What do think the ex-dividend price will be

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Problem 1: Burkes Pass Ltd has declared a $8.40 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15%. New tax regulations require that taxes will be withheld at the time the dividend is paid. Burkes Pass Ltd sells $87 per share, and is about to go ex dividend. What do you think the ex-dividend price will be?

Reference no: EM133002572

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