Assume that it is 2008. You purchased CSH stock for $40 one year ago and it is now selling for $52. The company has announced that it plans a $12 special dividend. You are considering whether to sell the stocknow, or wait to receive the dividend and then sell.

a. Assuming 2008 taxrates, whatex-dividend price of CSH will make you indifferent between selling now andwaiting?

In2008, the capital gains tax rate is 15% and the dividend tax rate is 15%. The tax on a $12 capital gain is $_______and the tax on $10 special dividend is $_______. The after tax income for both will be $________. Round to the nearest cent

b. Suppose the capital gains tax rate is 20% and the dividend tax rate is 42%, whatex-dividend price would make you indifferentnow?

If the capital gains tax rate is 20% and the dividend rate is 42%, the difference between the two options in part a will be $_________ Round to the nearest cent