Assume that it is 2008. You purchased CSH stock for $22 one year ago and it is now selling for $33. The company has announced that it plans a $11 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 $11 capital gain is $_______ and the tax on a $11 special dividend is $______. Theafter-tax income for both will be $_______.

(Round to the nearestcent.)

b. Suppose the capital gains tax rate is 25 % and the dividend tax rate is 38 %, whatex-dividend price would make you indifferentnow?