If the shares are selling at 10 per share how much would


Question: LMN Corporation, a real estate corporation, is planning to pay a dividend of $0.50 per share. Most of the investors in LMN corporation are other corporations that pay 40% of their ordinary income and 28% of their capital gains as taxes. However, they are allowed to exempt 85% of the dividends they receive from taxes. If the shares are selling at $10 per share, how much would you expect the stock price to drop on the ex-dividend day?

Solution Preview :

Prepared by a verified Expert
Finance Basics: If the shares are selling at 10 per share how much would
Reference No:- TGS02485874

Now Priced at $15 (50% Discount)

Recommended (92%)

Rated (4.4/5)