Tattler,Inc.has declared a $4.60 per share dividend.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.Tattler sells for $87 per share,and the stock is about to go ex-dividend.What do you think the ex-dividend price will be?
A) $82.40
B) $83.32
C) $85.08
D) $86.67
E) $87.00
Correct Answer:
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