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:

Collective Unconscious

A concept in analytical psychology, proposed by Carl Jung, suggesting the existence of inherited psychic structures shared among beings of the same species.

Human Experience

The sum total of sensory, emotional, cognitive, and social interactions and reactions that a person accumulates throughout their life.

Repressed Experiences

Thoughts that have been automatically concealed in the mind due to their ties with overwhelming stress or traumatic incidents.

Striving for Superiority

An inherent drive to achieve personal excellence and overcome feelings of inferiority, as described in Adlerian psychology.