Gatto, Inc., has declared a $5.85 per share dividend. Suppose capital gains are not taxed, but dividends
Question:
Gatto, Inc., has declared a $5.85 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company’s stock sells for $78.35 per share, and the stock is about to go ex dividend. What do you think the ex-dividend price will be?
Step by Step Answer:
Thorough Calculations The exdividend p...View the full answer
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Related Video
Constant Growth Dividend Discount Model – This dividend discount model assumes dividends grow at a fixed percentage. They are not variable and are consistent throughout. Variable Growth Dividend Discount Model or Non-Constant Growth model
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