What do you think the ex-dividend price will be

Assignment Help Financial Management

Reference no: EM13881930

Miller, Inc., has declared a $6.30 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 $114 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).)

Ex-dividend price $

Reference no: EM13881930

Questions Cloud

Unbiased expectations theory of structure of interest rates : Suppose we observe the following rates: 1R1 = 3%, 1R2 = 5%. If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year interest rate expected one year from now, E(2r1)?

The current spot exchange rate : The current spot exchange rate is $1.55 = €1.00 and the three-month forward rate is $1.60 = €1.00. Consider a three-month American call option on €62,500 with a strike price of $1.50 = €1.00. If you pay an option premium of $5,000 to buy this call, a..

Expected to pay the dividends over the next four years : Lohn Corporation is expected to pay the following dividends over the next four years: $14, $10, $9, and $4.50. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 10..

Growth rate in dividends-what is the current share price : Bayou Okra Farms just paid a dividend of $3.35 on its stock. The growth rate in dividends is expected to be a constant 4 percent per year indefinitely. Investors require a return of 16 percent for the first three years, a return of 14 percent for the..

What do you think the ex-dividend price will be : Miller, Inc., has declared a $6.30 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 $114 per share, a..

Cost of capital estimate deviate to change the decision : FastTrack Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the costs is $296,638 per year. Once in production, the bike is expected to make $202,100 per year for 10 years. The cash inflows begin at ..

Various trading strategies appear to offer non-zero alphas : Various trading strategies appear to offer non-zero alphas when we examine real world data. If indeed these alphas are positive, it could be explained by any of the following except:

Considered difficulty with regards to the CAPM : Which of the following is not considered a difficulty with regards to the CAPM?

Spend all of its excess cash on share repurchase program : A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,400 and other assets of $3,500. Equity is worth $4,900. The firm has 700 shares of stock outstanding and net income of $1,450. The firm has decided to spend ..

User Account

All Pages