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QC 14. Suppose that all capital gains are taxed at a 22% rate, and that...

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QC 14. Suppose that all capital gains are taxed at a 22% rate, and that the dividend tax rate is 41%. Arbuckle Corp is currently trading for $27, and is about to pay a $4 special dividend. a. Absent any other trading frictions or news, what will its share price be just after the dividend is paid? b. Suppose Arbuckle made a surprise announcement that it would do a share repurchase rather than pay a special dividend. What net tax savings per share for an investor would result from this decision? c. What would the Arbuckle's stock price be after the announcement of this change

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