1.4 Assume the market is perfect except for the fact that investors have to pay taxes on their dividend income and capital gains (i.e., the difference between the selling price and the purchase price of stocks if investors make a profit). Tax rates in U.S. in year 1993: tax rate on dividend income (td)=40%, tax rate on capital gain income (tg)=28%. Price on the day immediately prior to ex-div date (Pb)=$10, dividend per share (d)=$2. Calculate the price on the ex-div date (Pe) (7 points)