Air Taxi, Inc. has declared a $9.00 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 19% and new regulations require that dividends are taxed when paid. Air Taxi stock sells for $119 per share.
What will the ex-dividend price be?
Dividend per share $9.00
Tax rate19%
Price $119.00
111.71
110.81
126.29
107.89