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Exercise . Dividend Payout ; Slight Consider time !) , I And 2. A dividend in pound at time I The ex - dividend date

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Exercise . Dividend Payout ; Slight Consider time !) , I And 2. A dividend in pound at time I The ex - dividend date dividend payment date For individual shareholders , the personal tax rate on dividend is ting and the on capital gains is 1506 For institutional shareholders , the personal tax rate on dividend to and that on capital gains is FINE . The after-tax expected return on equity in 20 10 that of between time I and time I , And line between time II and time 2 . The stock price in worth What time . The stock price is reported to he with I'M at time I Remark The notation It stands for time I right after rush- flour have been paid Place yourself at time It What is the exported ) price of the stock at time It when all shareholders are individual ( P( 1+ ) ? Remark This price is the go - called er- dividend price What is the ( expected price of the stuck at time It when all shareholders are institution Ations ( Pelt ) ? Remark This price is the go - called or dividend price Do compute the before tax counter return on the stock between time II and time I when all shareholders are individuals ( The ( It ) If Compute the before tax expected return on the stock between time II and time I when all shareholders are institutions ( ray( It!) Place sitself at time !) my Compute the dividend paid at time I when all shareholders are individuals ( Dil! ) 6 Compute the dividend paid at time I when all shareholders are institutions ( D (1 ) What is the ( expected ) price of the stack , at time I , right before the dividrent is paid when all shareholders are individuals ( Pri!)? Remark This price is the so called cion - dividend price . What is the ( expected ) price of the stack , at time I , right before the dividend in paid when all shareholders are institutions ( ! ! ! ! Remark This price is the so called con- dividend

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