Use the Following Information to Answer the Question(s)below

question 18

Multiple Choice

Use the following information to answer the question(s) below.
Suppose that all capital gains are taxed at a 20% rate,and that the dividend tax rate is 40%.Rearden Metal is currently trading for $40 per share,and is about to pay a $5 special dividend.
-Absent any other trading frictions or news,Rearden's share price just after the dividend is paid will be closest to:

• A)$35.
• B)$36.
• C)$37.
• D)$40.

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Definitions:

External Events

Occurrences or situations originating outside an individual or system that can have significant effects on behavior or outcomes.

Internal Sensations

The perception of bodily functions, including pain, hunger, thirst, and the internal states of the body.

Adequate Sleep

The sufficient amount of sleep required for optimal health and functioning, varying by age and individual needs.

Circadian Rhythm

The internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.