Homework answers / question archive / The board of directors at Jameson Technologies recently declared a $2

The board of directors at Jameson Technologies recently declared a $2

Finance

Share With

The board of directors at Jameson Technologies recently declared a $2.50 dividend. The firm’s stock is currently trading for $98.60 per share. If all investors pay a flat tax of 20% on dividend income, then what should be the market price of the stock on the ex-dividend date?

a.   $100.60
b.   $96.60
c.   $98.60
d.   $101.10
e.   $96.10