when receive divident on foreign equity investment, for example denominated in Euros, some times there is tax credit. if there are tax credit on divident, for example 10%, so the investor only receive (1-10%)* dividend, or 100% of the dividend? Thanks.
it affects the taxable income from the dividend, but does not affect total return because the US government returns the credit to you at the end of the year.
Which does have its effect because you temporarily have less to invest which will affect your performance. Don’t know if CFAI goes into detail on this though.