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Suppose that all capitar gains are taxed at a 26% rate, and that the ovidend tax rate is 35%. Arbuckle Corp. is currently trading for

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Suppose that all capitar gains are taxed at a 26% rate, and that the ovidend tax rate is 35%. Arbuckle Corp. is currently trading for 341 , and is about to pay a 36 special dividend. a. Absent any other trading frictions or news, what will its share price be just after the dividend is paid? Suppose Arbuckle mede a surprise announcement that if would do a share repurchase rather than pay a special dividend. b. What net tax savings per share for an investor would result from this decision? c. What would hacpen to Arbuckje's stock price upon the announcement of this change? a. Absent any other trading fricticas or news, what will tas share price be just after the dividend is poid? Absert ary cther trading trictions of news, the shace price just afier the dividend is paid is 3 (Round to the nearest cent)

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