The Green Fiddle Has Declared an $8 Per Share Dividend

question 14

Multiple Choice

The Green Fiddle has declared an $8 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. Green Fiddle stock sells for $71.50 per share, and the stock is about to go ex-dividend. What will the ex-dividend price be?

• A)$64.70
• B)$67.90
• C)$78.30
• D)$79.50
• E)$82.23