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d. Suppose the only owners of stock are corporations. Recall that corporations get at least a 50 percent exemption from taxation on the dividend income
d. Suppose the only owners of stock are corporations. Recall that corporations get at least a 50 percent exemption from taxation on the dividend income they receive, but they do not get such an exemption on capital gains. If the corporation's income and capital gains tax rates are both 33 percent, what does this model predict the exdividend share price will be? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
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