1. You purchased CSH stock for $34 one year ago and it is now selling for $46. The company has announced that it plans a $12 special dividend. You are considering whether to sell the stock now or wait to receive the dividend and then sell. 
2. 
   
3. a. Assuming 2008 tax rates, what ex-dividend price of CSH will make you indifferent between selling now and waiting? 
4. 
   
5. b. Suppose the capital gains tax rate is 20% and the dividend tax rate is 38%, what ex-dividend price would make you indifferent now?

Answer rating: 100% (QA)

In 2008 Both capital gain 15 Dividend Tax rafe we will calculate price a... View the full answer