Question
Ginger, Inc., has declared a $6.70 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 10 percent. New IRS regulations
| Ginger, Inc., has declared a $6.70 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 10 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company's stock sells for $94.65 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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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
