ry, Sne wants charnication on the following: t are the dividend signals Winnie is describing? en that her company is young, what are other factors to consider before deciding dividends? lowing the life cycle hypothesis, what should Winnie do? and Taxes purchased 500 shares worth $10,000 of Design Co., a well-established company ovides outsourcing for technological research. On January 8, 2015, Design Co. ed a $2.50 dividend per share. The ex-dividend date is January 23, and the dividends be paid on March 16, 2015. On January 20, 2015, he sold 100 shares of the pany for $40 per share. Marcus's personal tax rate is 35 percent (federal and provincial combined). Given that capital gains are taxed at 50 percent, how much tax will Marcus pay for the sale of shares? Assuming dividends are grossed up at 38 percent and the total dividend tax credit is equal to 20 percent of the grossed-up dividends, how much tax will Marcus pay on the cash dividends received from Design Co.? What is his total tax obligation? Would your answer to part (b) be different if a stock dividend were paid instead of a cash dividend? Prove the ex-dividend price model in Problem 19.18. 2F Mostly cloudy ry, Sne wants charnication on the following: t are the dividend signals Winnie is describing? en that her company is young, what are other factors to consider before deciding dividends? lowing the life cycle hypothesis, what should Winnie do? and Taxes purchased 500 shares worth $10,000 of Design Co., a well-established company ovides outsourcing for technological research. On January 8, 2015, Design Co. ed a $2.50 dividend per share. The ex-dividend date is January 23, and the dividends be paid on March 16, 2015. On January 20, 2015, he sold 100 shares of the pany for $40 per share. Marcus's personal tax rate is 35 percent (federal and provincial combined). Given that capital gains are taxed at 50 percent, how much tax will Marcus pay for the sale of shares? Assuming dividends are grossed up at 38 percent and the total dividend tax credit is equal to 20 percent of the grossed-up dividends, how much tax will Marcus pay on the cash dividends received from Design Co.? What is his total tax obligation? Would your answer to part (b) be different if a stock dividend were paid instead of a cash dividend? Prove the ex-dividend price model in Problem 19.18. 2F Mostly cloudy