UC Mars Ltd. is planning on paying a dividend of $1 per share. Most of UC...
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UC Mars Ltd. is planning on paying a dividend of $1 per share. Most of UC Mars Ltd's investors are other companies that pay 20% of their income and 40% of their capital gains as taxes. However they are allowed to exempt 20% of the dividends they receive from taxes. The shares : are selling at $15 per share, cum div. Assuming no other changes affect the share price, please use the above information to calculate the price of a UC Mars Ltd. share at the end of the ex-dividend day? UC Mars Ltd. is planning on paying a dividend of $1 per share. Most of UC Mars Ltd's investors are other companies that pay 20% of their income and 40% of their capital gains as taxes. However they are allowed to exempt 20% of the dividends they receive from taxes. The shares : are selling at $15 per share, cum div. Assuming no other changes affect the share price, please use the above information to calculate the price of a UC Mars Ltd. share at the end of the ex-dividend day?
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To calculate the price of a UC Mars Ltd share at the end of the exdividend day we need to consider t... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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