Ash, inc., has declared a dividend of $6.30 per share. suppose capital gains are not taxed, but dividends are taxed at 20 percent. new irs regulations require that taxes be withheld at the time the dividend is paid. the company's stock sells for $94.45 per share and is about to go ex dividend. what do you think the ex-dividend price will be? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

$89.41

Explanation:

Data provided in the question:

Dividend declared = $6.30 per share

Tax rate = 20%

Selling price of the stock = $94.45

Now,

Aftertax dividend = Dividend × ( 1 - Tax rate )

= $6.30 × ( 1 - 0.20 )

= $5.04

Thus,

Ex-dividend price = Selling price - Aftertax dividend

or

Ex-dividend price = $94.45 - $5.04

or

Ex-dividend price = $89.41

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20