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DIVIDEND AND OTHER PAYOUT (Chapter 19) 1. Dividends and Taxes Lee Ann, Inc., has declared a $9.50 per-share dividend. Suppose capital gains are not
DIVIDEND AND OTHER PAYOUT (Chapter 19) 1. Dividends and Taxes Lee Ann, Inc., has declared a $9.50 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld when the dividend is paid. Lee Ann sells for $115 per share, and the stock is about to go exdividend. What do you think the ex-dividend price will be?
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
9th edition
78034698, 978-0077502287, 77502280, 978-0078034695
