Tax rate of shareholders

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The closing price of a share of stock today is $67.18. The company pays a quarterly dividend of $1.65 per share. What would the opening price of the stock be tomorrow if tomorrow is the ex-date? Shareholders of this stock are in the 25% tax bracket. I want to see if I'm on the right track with solving this type of problem. I believe that the opening price the next day would be $68.83, which is the Price of the stock + the next dividend to be paid. The tax rate of shareholders does not affect stock price sold on the market. Is this the correct way to solve this problem?

Reference no: EM132066754

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