So Much, Inc., had declared a $4.60 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15%.

So Much, Inc., had declared a $4.60 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15%. New IRS regulations require that taxes be withheld at the time the dividend is paid. So Much sells for $80.37 per share, and the stock is about to go ex-dividend. What do yo think the ex-dividend price will be?

Dividend declaredTax on dividend withheldDividend paid to shareholdersCurrent share price of the stockEx-dividend price of the stock $4.60$0.69$3.91$80.37$76.46