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Consider the Following Equation

Question 42

Multiple Choice

Consider the following equation:
Pcum - Pex = Div × Consider the following equation: P<sub>cum</sub> - P<sub>ex </sub>= Div × The term τ<sub>d</sub> is: A) the price per share after a dividend is paid. B) the price per share before a dividend is paid. C) the personal tax rate for capital gains. D) the personal tax rate for dividend.
The term τd is:


A) the price per share after a dividend is paid.
B) the price per share before a dividend is paid.
C) the personal tax rate for capital gains.
D) the personal tax rate for dividend.

Correct Answer:

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