Question
Assume that it is 2008. You purchased CSH stock for $39 one year ago and it is now selling for $47. The company has announced
Assume that it is 2008. You purchased CSH stock for $39 one year ago and it is now selling for $47. The company has announced that it plans a $8 special dividend. You are considering whether to sell the stock now, or wait to receive the dividend and then sell.
a. Assuming 2008 tax rates, what ex-dividend price of CSH will make you indifferent between selling now and waiting?
b. Suppose the capital gains tax rate is 25% and the dividend tax rate is 38%, what ex-dividend price would make you indifferent now?
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Supernatural Provision Living In Financial Freedom
Authors: Joan Hunter, Sid Roth
1st Edition
1641238232, 978-1641238236
