Lee Ann, Inc., has declared a $7.00 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 10 percent. New IRS regulation required that taxes be withheld when the dividend is paid.
Lee Ann sells for $94.80 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be?
(Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g. 32.16))