Question
Ginger, Inc., has declared a $6.00 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percent. New IRS regulations
| Ginger, Inc., has declared a $6.00 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. Ginger stock sells for $94.30 per share, and the stock is about to go ex dividend. |
| What do you think the ex-dividend price will be? |
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Valuation Workbook Step By Step Exercises And Tests To Help You Master Valuation
Authors: McKinsey & Company Inc.
7th Edition
1119611814, 978-1119611813
