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Question 7) ABC has just announced that is is planning to pay a dividend of $6.8 per share. Before the announcement the share price of
Question 7) ABC has just announced that is is planning to pay a dividend of $6.8 per share. Before the announcement the share price of ABC was $35.8. Assume that the tax rate on capital gains is 7%, the tax rate on dividends is 8%. By how much will you expect the share price of ABC to change on the ex-date. Round your answers to two decimals (do not include the $-symbol in your answer). If you expect a positive change (share price will increase) enter a positive number. If you expect a negative change (share price will decline) enter a negative number.
Question 7 5 points Save Answer ABC has just announced that is is planning to pay a dividend of $6.8 per share. Before the announcement the share price of ABC was $35.8. Assume that the tax rate on capital gains is 7%, the tax rate on dividends is 8%. By how much will you expect the share price of ABC to change on the ex-date. Round your answers to two decimals (do not include the $-symbol in your answer). If you expect a positive change (share price will increase) enter a positive number. If you expect a negative change (share price will decline) enter a negative numberStep by Step Solution
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