Question: COSCO Inc., has declared a RM 4 . 6 0 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 1

COSCO Inc., has declared a RM4.60 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New tax regulations require that taxes be withheld at the time the dividend is paid. COSCO sells for RM80.37 per share, and thestock is about to go ex-dividend. What do you think the ex-dividend price will be?

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