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Ethan Allen CEO Farooq Kathwari on the impact of the fiscal cliff deal on companies and their dividends.
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Thanks so for months business leaders and CEOs have been putting the pressure the vice grips on Washington at least verbally to get the economy back -- -- starting with the fiscal cliff so.
Now what we've got a deal is it it deal that will help them with the CEOs have to say particularly.
The ones.
To my -- visit to my right to my left my.
-- -- -- -- -- Now I'm opposite on TV who fast track their dividends out of fear of what might happen that.
After the first of the year joining me now on -- Fox Business exclusive -- for a cup quarry one of these CEOs.
He is the CEO Ethan Allen he's the chairman and president as well and you Farouk welcome had issued a special dividend -- 41 cents.
And a nine cent he pushed up your nine cent dividend that was supposed to be in January pushed developed to about the twentieth of December if I'm remembering correctly.
As many CEOs did.
It's that in retrospect and hindsight the correct decision to a -- Yes Liz felt -- to be only a program and I wish I was there in New York but -- at least as good diamond area -- -- speaking from Connecticut yeah I understand.
Well I imagine -- this principle I'm glad that the rate increase went from 15% to 20% to that I think it is important to -- That rate on dividends and capital gains.
At a lower level because you want to encourage.
Companies to give dividend change.
I in my view analysts and and deal we -- about two total of fourteen million dollars in December at twelve million dollars -- This special dividend to.
From about a hundred million dollars that we have in cash.
Now if he had borrowed to audit Fiat sort of jeopardized our cash Blanton in giving the dividend then I would have been concerned.
I think what we did -- right.
It was not a major relatively a major amount to and I think -- -- that are happy that we talked.
Fruit stand by we're gonna take a quick commercial break we have many questions to ask you about the deal on how -- affect your business will be right back with fruit cup -- -- even now.
