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Timsang, Inc., has declared a $6.90 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percent. New IRS regulations

Timsang, Inc., has declared a $6.90 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company's stock sells for $120 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be?

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