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Lee Ann, Inc., has declared a $5.70 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percent. New IRS regulations require that taxes be withheld when the dividend is paid. The company's stock sells for $94.15 per share and is about to go ex-dividend.
Required:
What do you think the ex-dividend price will be?
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Lee Ann, Inc., has declared a $5.70 per-share dividend. Suppose capital gains are not taxed, but div...
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