Shares of Markely, Inc. stock are currently priced at $43.78. The stock goes ex-dividend tomorrow in preparation for a $.60 quarterly dividend. The average shareholder faces a marginal tax rate of 30% and the company has a cost of equity of 12% and a 35% tax rate. At what price should the stock open tomorrow, all else constant?
A) $40.53
B) $43.18
C) $43.36
D) $43.39
E) $44.06
Correct Answer:
Verified
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