U.S. Scare, Inc., has declared a ($4.00) per share dividend. Suppose capital gains are not taxed, but
Question:
U.S. Scare, Inc., has declared a \($4.00\) per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 34 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. U.S. Scare sells for \($60\) per share, and the stock is about to go ex dividend. What do you think the ex-dividend price will be?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072313000
5th Edition
Authors: Stephen A Ross, Randolph W Westerfield
Question Posted: