The stock is about to go ex-dividend

Assignment Help Financial Management

Reference no: EM131068363

Miller, Inc., has declared a $7.10 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 10 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. Miller sells for $122 per share, and the stock is about to go ex-dividend.

Required:

What do you think the ex-dividend price will be? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM131068363

Questions Cloud

Different option strategies to create a real would strategy : Use six(6) different option strategies to create a real would strategy and explain why. Be specific and avoid using general statements like "I expect the price to increase so I will use bull spread".

Both inpatient and outpatient revenue and expense : Budget assumptions for this exercise include both inpatient and outpatient revenue and expense. Assumptions are as follows: As to the initial budget: The budget anticipated 30,000 inpatient days this year at an average of $650 revenue per day. The in..

What is the stocks P-E ratio : Castles in the Sand generates a ROE of 23.5 percent and maintains a payout ratio of 0.6 . Its earnings this coming year will be $ 3.61 per share. Investors expect a return of 14.20 percent on the stock. What is the stocks P/E ratio?

What is the NPV of the project : You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago for $1.49 million in anticipation of using it as a..

The stock is about to go ex-dividend : Miller, Inc., has declared a $7.10 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 10 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. Miller sells for $122 per share, a..

What is the market price of the bond : A tax-exempt bond was recently issued at an annual 12 percent coupon rate and matures twenty years from today. The par value of the bond is $1,000. If required market rates are 12 percent, what is the market price of the bond? If required market rate..

Present value-interest rate and future value : Solve for the unknown number of years in each of the following

What it the maximum interest rate you could be charged : You are looking to finance your home. The bank is offering a three-year ARM (adjustable-rate mortgage) with an introductory rate of 3.90%. What will your interest rate be after three years if the LIBOR rate does not change? In three years, what it th..

Out of pocket medical expenses : Both Danny and Kaela work at Comcast. They each make $70,000 a year. They also both experience $2,500 a year in out of pocket medical expenses. Each have a 22% tax rate. Danny does not contribute any money to a health care FSA. Kaela contributes $250..

User Account

All Pages