Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lee Ann, Inc., has declared a $7.10 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 10 percent. New IRS regulations

Lee Ann, Inc., has declared a $7.10 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 10 percent. New IRS regulations require that taxes be withheld when the dividend is paid. The company's stock sells for $94.85 per share and is about to go ex-dividend.

What do you think the ex-dividend price will be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Business Of Personal Finance

Authors: Joseph Calandro Jr, John Hoffmire

1st Edition

1032104562, 978-1032104560

More Books

Students also viewed these Finance questions