Kaldi's Inc. only pays dividends to its shareholders. The current share price is $85, the company has 20 million shares outstanding, $400 million in outstanding debt, and $200 million in excess cash. Assume that the company will use all of date. Assume that market are not perfect, and that the only market imperfection are taxes. If the tax rate in 20% and the tax rate on capital gains is 10%, what will happen to the share price on the ex-date? Select the best one. I. The share price will decline to $75. II. The share price will remain at $85. III. The share price will increase to $95. IV. The share price will decline to $76.11. V. The share price will decline to $73.75. QUESTION 6 Supreme Roasters Inc. only pays dividends to its shareholders. The current share price is $200, the company has 15 million shares date. Assume that market are perfect (i.e. there are no taxes, no transaction costs, and no information problems). What will happen to the share price on the ex-date? Select the best one. I. The share price will decline to $190. II. The share price will increase to $210. III. Nothing, the share price will remain at $200. IV. The share price will decline to $195. V. The share price will increase to $205