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Suppose that the government passed an unusual tax law last year stating that dividends will now be taxed at 10 percent and capital gains will

Suppose that the government passed an unusual tax law last year stating that dividends will now be taxed at 10 percent and capital gains will be now taxed at 40 percent. You currently own a stock that will pay a special dividend tomorrow, and you wonder how this new tax law will affect the price for this stock on the ex-dividend date. Assume that the cum-dividend price of this stock equals $150 per share, and that the upcoming special dividend equals $15 per share. What do you expect the stock price will be on the ex-dividend date?

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