Problem 17-14 Dividends and Taxes (LO2] As discussed in the text, in the absence of market Imperfections and tax effects, we would expect the share price to decline by the amount of the dividend payment when the stock goes a dividend. Once we consider the role of taxes, however, this is not necessarily true. One model has been proposed that incorporates tax effects into determining the dividend price Po-PVD-A-TI-TO Where Pols the price just before the stock goes ex Px is the exdidend share price, the amount of the dividend per share, Tols the relevant marginal personal tax rate on dividends, and as the effective marginal tax rate on capital gains 2. "To 10, how much will the share price tal when she took gous ex? PX DO PO 28 percent and how much the share price for Dentround mediate calculations and round your team pleco 2 cent and the show Dono und data cand und die