Question
ABC, Inc., has declared a $4 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 18 percent. New IRS regulations
ABC, Inc., has declared a $4 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 18 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company's stock sells for $89.5 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be?
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
