Let’s assume that marginal taxpayer (who set the price) is receiving dividends. Share price before the stock goes ex-dividend is 101 € and dividend per stock is 5€. The tax rate for dividends is 25% and for capital gains the marginal tax rate is 30%. When the share goes ex-dividend, the expected share price decline is not the same as the size of dividend (Elton and Gruber, 1970) Please calculate the more reasonable prediction of the ex-dividend share price using the tax preference ratio.