Question: Silver Bullet Express, has declared a $5 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 14 percent. New IRS

| Silver Bullet Express, has declared a $5 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 14 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company's stock sells for $80.5 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be? |
rev: 09_20_2012 11_19_2012
Multiple Choice
-
$80.50
-
$73.15
-
$76.20
-
$79.25
-
$75.50
Silver Bullet Express, has declared a $5 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 14 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company's stock sells for $80.5 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be? Multiple Choice $80.50 $73.15 $76.20 $79.25 $75.50
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
