Score: 0 of 1 pt 9 of 26 (complete HW Score: 0%, 0 of 26 pt P 17-9 (similar to) Question Help The HNH Corporation will pay a constant dividend of $2.50 per share, per year, in perpetuty Assume will investors pay a 25 taxon dividends and that there is no capital gains tax. The cost of capital for investing in stock is 12% a What is the price of a share of HINH stock? b. Assume that management makes a surprise announcement that will no longer pay dividends but will use the cash to purchase stock instead. What is the price of a share of stock now? a What is the price of a share of He stock? The price of a shore of a stock is 5 (Round to the newest cent) ULUIL. UULI 10 of 26 (0 completo) . P 17-10 (similar to) You purchased CSH stock for $37 and it is now selling for $49. The company has announced that it plus a $12 special dividend a. Assuming 2016 tax rates of 15% on dividends and capital gains, if you sell the stock or want and receive the dividend, will you have different after tax income? b. If the capital gains tax rate is 24% and the dividend tax rate is 42%, what is the difference between the two options in parta? a. Assuming 2015 tax rates of 15% on dividends and capital gains, if you sell the stock or wout and receive the dividend will you have different after-tax income? (Select from the drop-down menu) Assuming 2016 tax rates are 15% on capital gain and 15% on dividends, it you sell the stock or wait and receive the dividend, you Whave different ter-tax income