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  3. problem 14-3 dividends and taxes (lo 2] 3.33 point

Problem 14-3 Dividends and Taxes (LO 2] 3.33 points Estes Park, Inc., has declared a...

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Problem 14-3 Dividends and Taxes (LO 2] 3.33 points Estes Park, Inc., has declared a dividend of $7.40 per share. Suppose capital gains are not taxed, but dividends are taxed at 20 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company's stock sells for $125 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Ex-dividend price eBook References

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