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Dividends and Taxes Lee Ann, Inc., has declared a $ 5.60 per- share dividend. Sup-pose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld when the dividend is paid. Lee Ann sells for $ 75 per share, and the stock is about to go ex dividend. What do you think the ex- dividend price will be?

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