Supreme Roasters Inc. only pays dividends to its shareholders. The current share price is $200, the company has 15 million shares outstanding, $300 million in outstanding debt, and $150 million in excess cash. Assume that the company will use all of its excess cash to pay its shareholders a dividend. For simplicity, also assume that the ex-date is tomorrow and that the dividend will be paid on the ex-date. Assume that market are not perfect, and that the only market imperfection are taxes. If the tax rate on dividends is 10% and the tax rate on capital gains is 20%, what will happen to the share price on the ex-date? Select the best one.

	I.	The share price will decline to $195.
	II.	The share price will decline to $188.75.
	III.	Nothing, the share price will remain at $200.
	IV.	The share price will decline to $191.11.
	V.	The share price will decline to $190.