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Air Taxi, Inc. has declared a $6.50 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 16% and new regulations require
Air Taxi, Inc. has declared a $6.50 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 16% and new regulations require that dividends are taxed when paid. Air Taxi stock sells for $116 per share.
What will the ex-dividend price be?
Dividend per share$6.50
Tax rate 16%
Price $116.00
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