A companys stock is priced at 50 per share and it plans to


Question: A company's stock is priced at $50 per share, and it plans to pay a $2 cash dividend. § Assuming perfect capital markets, what will the per share price be after the dividend payment? § If the average tax rate on dividends is 25%, what will the new share price be?

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Finance Basics: A companys stock is priced at 50 per share and it plans to
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