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VikaD [51]
3 years ago
5

Estes Park, Inc., has declared a dividend of $6.80 per share. Suppose capital gains are not taxed, but dividends are taxed at 15

percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company's stock sells for $119 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be?
Business
1 answer:
ozzi3 years ago
5 0

Answer:

$113.22

Explanation:

First, we need to find the after-tax dividend;

After-tax Dividend = Dividend x (1 - t) = $6.80 x (1 - 0.15) = $5.78

Ex-Dividend Price = Stock Price - After-tax Dividend

= $119 - $5.78 = $113.22

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2 years ago
What kind of loan protects businesses in the case of an emergency?
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3 years ago
An office manager uses 500 boxes of file folders per year. The price is $8.50 per box for an order size Q &lt;= 200, $8.00 per b
Serhud [2]

Answer:

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Explanation:

Solution

Given that:

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7 0
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Answer:

Indirect Method

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      d. Accounts receivable increase or decrease.

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5 0
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0.8; normal

Explanation:

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3 years ago
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