Question
BHP is currently trading for $30 per share. Management has announced a $5 special dividend, to be paid next month. Investors capital gains are taxed
BHP is currently trading for $30 per share. Management has announced a $5 special dividend, to be paid next month. Investors capital gains are taxed at a 20% rate, and their received dividends are taxed at 40%. Based on this information, what is your estimate of BHPs share price immediately after the dividend is paid?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
11th Global Edition
1292094184, 978-1292094182
