An investor has a 38% ordinary income tax rate and a 20% long term capital gains tax rate. The investor holds stock in a firm that could pay its usual S1 per share dividend or reinvest the cash in the firm. The stock price is currently $25 per share. If the firm does not pay the dividend the share price will rise. If it pays the dividend the share price will stay the same. By how much must the share price rise if the dividend is not paid in order to make the investor indifferent between receiving th dividend or not? A) $2.00 B) $0.59 C) $1.55 D) $1.97 E) $2.50 Answer: C Page: 221 Level: Difficult Response: 2 * (1-0.38) = Change in share price * (1-0.20) Couldl you please help me, whioh ansuer e shareholders at the same time in is correo+, thank00 80 mon r T founor on Cheg? 2 dferanestts share price 2(-0,32) P(-0,zD) 061 (1-0,20) [ P-25) sharc pricc P251 145 S 735-25