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Capital gains are taxed at 22% rate, dividends Rate is 46%. JLG Corp is trading at 31, and is paying a $6 dividend. . a.

Capital gains are taxed at 22% rate, dividends Rate is 46%.

JLG Corp is trading at 31, and is paying a $6 dividend. .

a. What will its share price be after the dividend is paid?

b. What net tax savings per share for an investor?

c. What will happen to stock price upon announcement of this change?

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