PowerPoints Inc, only pays dividends to its shareholders. The current share price is $85, the company has 200 million shares outstanding, $6,000 million in outstanding debt, and $600 mittion in excess cash. Assume that the company will use all of its excess cash to pay its shareholders a dividend. For simplicity, also assume that the ex-date is tomorrow and that the dividend will be paid on the ex-date. Assume that markets are not perfect, and that the only market imperfection are taxes. If the tax rate on dividends is. 20% and the tax rate on capital gains is 20%, what will happen to the share price on the ex-date (after the dividend is paid)? Select the best one. Nothing, the share price will remain at $85. The share price will increase to $88. The share price will decline to $82. The share price will decline to $80.43 The share price will decline to $83.25