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5. a) RFC Corp. has announced $1 dividend. If RFC's price last price cum-dividend is $50, what should its first ex-dividend price be (assuming perfect

a) RFC Corp. has announced $1 dividend. If RFC's price last price cum-dividend is $50, what should its first ex-dividend price be (assuming perfect capital markets)? Why?

b) Does your answer change in imperfect markets i.e. in the presence of taxes and bankruptcy costs?

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