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Whitepunk [10]
3 years ago
5

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:
lidiya [134]3 years ago
3 0

Answer:

$99.3625

Explanation:

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

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

= $105.64 - {($7.75 × (1 - 0.19)}

= $105.64 - $6.2775

= $99.3625

Hence, the ex-dividend stock price is $99.3625

We simply applied the above formula so that the ex-dividend stock price could come

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