You believe that the average investor is subject to a 20 percent tax rate on dividend payments. If a firm is going to pay a $0.20 dividend, by what amount would you expect the stock price to drop on the ex-dividend date? Drop in the stock price $( )
You believe that the average investor is subject to a 20 percent tax rate on dividend payments. If a firm is going
to pay a $0.20 dividend, by what amount would you expect the stock price to drop on the ex-dividend date?
Drop in the stock price $( )
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