Air Taxi, Inc. has declared a $10.00 per-share dividend. Suppose capital gains are not taxed,...
70.2K
Verified Solution
Link Copied!
Question
Finance
Air Taxi, Inc. has declared a $10.00 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20% and new regulations require that dividends are taxed when paid. Air Taxi stock sells for $118 per share. What will the ex-dividend price be?
Dividend per share
$10.00
Tax rate
20%
Price
$118.00
$126.00
$105.50
$110.00
$108.80
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
