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Juli2301 [7.4K]
3 years ago
12

Blazer Sports Store is preparing to pay its quarterly dividend of $7.75 a share this quarter. The stock closed at $105.64 a shar

e today. What will the ex-dividend stock price be if the relevant tax rate is 19 percent and all else is held constant
Business
1 answer:
Lana71 [14]3 years ago
3 0

Answer:

$99.3625

Explanation:

The computation of ex-dividend stock price is shown below:-

Ex-dividend stock price = Stock closing price - Stock dividend × (1 - tax rate)

= $105.64 - $7.75 × (1 - 19%)

= $105.64 - $7.75 × 0.81

= $105.64 - 6.2775

= $99.3625

Therefore for computing the ex-dividend stock price we simply applied the above formula.

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