Brew inc. only pays dividends to its shareholders. The current share price is $100, the company has 10 million shares outstanding, $200 million in outstanding debt, and $150 milion in excess cash. Assume that the company will use all of its excess cash to pay its shareholders a dividend. For simplicity, also assume that the ex-date is tomorrow and that the dividend will be paid on the ex-date. Assume that market are not perfect, and that the only market imperfection are taxes. If the tax rate on dividends is 20% and the tax rate on capital gains is 30%, what will happen to the share price on the ex-date? Select the best one. 1. Nothing, the share price will remain at $100. 11. The share price will decline to $82.86. III. The share price will decline to $8.5. IV. The share price will increase to $115. v. The share price will decine to $86.88