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Tattler, Inc. has declared a dividend of $2.10 a share. Suppose capital gains are not taxed, but dividends are taxed at 15 percent and that the IRS regulations require that taxes be withheld at the time the dividend is paid. Tattler sells for $67 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be?

Financial Management, Finance

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