Question: Question 7 ABC has just announced that is is planning to pay a dividend of $3.1 per share. Before the announcement the share price of

Question 7

ABC has just announced that is is planning to pay a dividend of $3.1 per share. Before the announcement the share price of ABC was $40.9. Assume that the tax rate on capital gains is 27%, the tax rate on dividends is 9%. By how much will you expect the share price of ABC to change on the ex-date. Round your answers to two decimals (do not include the $-symbol in your answer). If you expect a positive change (share price will increase) enter a positive number. If you expect a negative change (share price will decline) enter a negative number.

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