Question
RRM Incorporated has just declared a dividend of $5.50 per share. The tax rate of dividends is 15 percent. The tax rate on capital gains
RRM Incorporated has just declared a dividend of $5.50 per share. The tax rate of dividends is 15 percent. The tax rate on capital gains is zero. The tax laws require the taxes to be withheld when the dividend is paid. RRM currently sells for $33 per share and the stock is about to go ex-dividend. What do you calculate the ex-dividend price will be?
| 28.33 |
| 27.50 |
| 32.73 |
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
