Company A has 1,000,000 shares of common stock outstanding. The stock sells for $50 per share. The common stock pays $2 per share dividend

(an annual payment).

The market values the $2 dividend at $2,000,000.

a. When the stock goes ex-dividend (the next buyer of the stock does not receive the dividend), the new stock price will be $ ________________.

b. The investor owning 100 shares, taxed on dividends at 0.15, will have total wealth of $ _____________.