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Getty Oil has 25 million shares outstanding and has a marginal corporate tax rate of 40%. Getty Oil announces that it will payout $40 million
Getty Oil has 25 million shares outstanding and has a marginal corporate tax rate of 40%. Getty Oil announces that it will payout $40 million in cash to investors through a special dividend. Shareholders had previously assumed that Getty Oil would retain this excess cash permanently. What is the expected change in Getty Oil's share price upon this announcement? $0.64 $0.96 $1.56 None of these $0.56
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