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Problem 6: Weight 15 points Please do not round intermediate calculations. Round your answer to 2 decimal places. An investor has a 35 percent dividend

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Problem 6: Weight 15 points Please do not round intermediate calculations. Round your answer to 2 decimal places. An investor has a 35 percent dividend income tax rate and a 22 percent long-term capital gains tax rate. The investor holds stock in a firm that could pay its usual $2 per share dividend or reinvest the cash in the firm. The stock price is currently $28 per share. If it pays the dividend, the share price will stay the same. If the firm does not pay the dividend, will the share price rise or fall? Please explain briefly why. By how much must the share price rise or fall if the dividend is not paid in order to make the investor indifferent between receiving the dividend or not

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