Use the Following Information to Answer the Question(s) Below

Use the following information to answer the question(s) below.
Suppose that all capital gains are taxed at a 20% rate, and that the dividend tax rate is 40%. Rearden Metal is currently trading for $40 per share, and is about to pay a $5 special dividend.
-Consider the following equation: P_cum - P_ex = Div × The term P_ex is:

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