Question: 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

Lee Ann, Inc., has declared a $9.50 per-share Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld when the 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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