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Noble Rocks, Inc. is all-equity financed. The total market value of the company is $200,000 and there are 4,000 shares outstanding. Noble declared a $5
Noble Rocks, Inc. is all-equity financed. The total market value of the company is $200,000 and there are 4,000 shares outstanding. Noble declared a $5 per share dividend. The stock will go ex-dividend tomorrow. C.) Assume that the tax rate on all dividend income is 25% and that there is no tax on capital gains. At what price will the stock sell, taking in consideration the tax on dividends?
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