The Green Fiddle Has Declared a $5 Per Share Dividend

question 18

Multiple Choice

The Green Fiddle has declared a $5 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)$67.25
• B)$67.90
• C)$78.30
• D)$79.50
• E)$82.23

---

Definitions:

Applied Voltage

The voltage that is externally applied to an electrical component or circuit, influencing its operation or behavior.

Total Resistance

The sum of all resistances in an electrical circuit, influencing the overall current flow.

Ohm's Law

A fundamental principle stating that the current through a conductor between two points is directly proportional to the voltage across the two points, given the resistance remains constant.

Earth Ground

A ground established by driving a metal rod into the earth.