Answer:
$113.31
Explanation:
Estees park has declared a dividend of $6.70 per share
The dividend is taxed at 30%
= 30/100
= 0.3
The company stock sells for $118 per share
The first step is to calculate the after tax dividend
After tax dividend= 6.70(1-0.3)
= 6.70×0.7
= $4.69
Therefore, the ex-dividend price can be calculated as follows
Ex-dividend price= $118-$4.69
= $113.31
Hence the ex-dividend price is $113.31
