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One trading strategy employed by investors around the ex-dividend date is dividend capture where some investors purchase the stock right before the ex-dividend date to

One trading strategy employed by investors around the ex-dividend date is dividend capture where some investors purchase the stock right before the ex-dividend date to obtain the stock ownership and dividend payment rights and sell the stock afterwards to keep only the dividend. Suppose that an investor in a 35% income tax bracket owns Walmart stock which is expected to pay a $10 dividend on December 23rd, 2022. This dividend payment is worth ________ to this investor while an investor in a 20% income tax bracket would value this dividend payment at ________. Because of these differences in valuation, we would expect for investors in _______ tax brackets to purchase Walmart stock before the ex-dividend date. If Walmart stock fell fell by close to $10 on the ex-dividend date, we can conclude that investors in a ________ tax bracket held this stock. (a) $6.50; $8.00; low; high (b) $6.50; $8.00; low; low (c) $3.50; $2.00; low; low (d) $6.50; $8.00; high; low

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