Question: Lee Ann Inc has declared a 9 50 per share dividend Suppose
Lee Ann, Inc., has declared a $9.50 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld when the dividend is paid. Lee Ann sells for $115 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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