Rrm incorporated has just declared a dividend of 1025 per, Financial Management

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Rrm incorporated has just declared a dividend of 1025 per

RRM Incorporated has just declared a dividend of $10.25 per share. The tax rate of dividends is 20 percent. The tax rate on capital gains is zero. The tax laws require the taxes to be withheld when the dividend is paid. RRM currently sells for $107 per share and the stock is about to go ex-dividend. What do you calculate the ex-dividend price will be?

98.80

96.75

93.80

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Financial Management: Rrm incorporated has just declared a dividend of 1025 per

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Financial Management: Rrm incorporated has just declared a dividend of 1025 per

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