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

question 95

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.
-Consider the following equation: P_cum - P_ex = Div × The term τ_d is:

• A) the price per share after a dividend is paid.
• B) the price per share before a dividend is paid.
• C) the personal tax rate for capital gains.
• D) the personal tax rate for dividend.

---

Definitions:

Prime-Time Media

The block of programming on television that is typically scheduled during the early to late evening when viewership is expected to be the highest.

Men

Adult human males, often discussed in various social, cultural, and biological contexts, including their roles, behaviors, and experiences in society.

Characters

The personalities or figures represented in a story, novel, play, or movie, developed through their actions, dialogue, and thoughts.

Digital Divide

The persistence of inequality in people’s access to electronic information.