LMN Corporation, a real estate company, is planning to pay a dividend of $0.80 per share. Most of the investors in LMN are other corporations that pay 40.00 percent of their ordinary income and 27.00 percent of their capital gains as taxes. However, they can exempt 71.00 percent of the dividends they receive from axes. If the shares are selling at $23.00 per share, what would be the ex-dividend stock price? O $21.03 O $22.03 $21.34 $22.80 $21.18
LMN Corporation, a real estate company, is planning to pay a dividend of $0.80 per share. Most of the investors in LMN are other corporations that pay 40.00 percent of their ordinary income and 27.00 percent of their capital gains as taxes. However, they can exempt 71.00 percent of the dividends they receive from axes. If the shares are selling at $23.00 per share, what would be the ex-dividend stock price? O $21.03 O $22.03 $21.34 $22.80 $21.18
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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LMN Corporation, a real estate company, is planning to pay a dividend of $0.80 per share. Most of the investors in LMN are other corporations that pay 40.00 percent of their ordinary income and 27.00 percent of their capital gains as taxes. However, they can exempt 71.00 percent of the dividends they receive from taxes. If the shares are selling at $23.00 per share, what would be the ex-dividend stock price? $21.03 $22.03 $21.34 $22.80 $21.18
Transcribed Image Text:LMN Corporation, a real estate company, is planning to pay a dividend of $0.80 per share. Most of the investors in LMN are other corporations that pay 40.00
percent of their ordinary income and 27.00 percent of their capital gains as taxes. However, they can exempt 71.00 percent of the dividends they receive from
taxes. If the shares are selling at $23.00 per share, what would be the ex-dividend stock price?
$21.03
$22.03
$21.34
$22.80
$21.18
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