Assume that it is 2008. You purchased CSH stock for $46 one year ago and it is now selling for $54. The company has announced that it plans a $88 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 $88 capital gain is _____, and the tax on a $88 special dividend is _____. Theafter-tax income for both will be _____. (Round to the nearestcent.)

b. Suppose the capital gains tax rate is 33% and the dividend tax rate is 38%, whatex-dividend price would make you indifferentnow?

If the capital gains tax rate is 33% and the dividend tax rate is 38%. The difference between the two options in part (a) will be _____.