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You own a stock today that currently sells for $40. The stock will pay a dividend of $2.50 per share in a few days, and

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You own a stock today that currently sells for $40. The stock will pay a dividend of $2.50 per share in a few days, and the ex-dividend date is tomorrow. Suppose you face a capital gains tax of 20% and a dividend tax of 40%. What will be the effect on the firm's share price on the ex-dividend date? Price will go up by $1.5 Price will fall by $2.5 Price will fall by $1.625 Price will fall by $1.875 O Price will go up by $2.5

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