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Air Taxi, Inc. has declared a $9.00 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 19% and new regulations...

Air Taxi, Inc. has declared a $9.00 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 19% and new regulations require that dividends are taxed when paid. Air Taxi stock sells for $119 per share.


What will the ex-dividend price be?


Dividend per share  $9.00  

Tax rate19%  

Price  $119.00  



111.71

110.81

126.29

107.89

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Answer to the question is a) 111.71 Exdividend price = current... View the full answer

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