In an efficient market, ignoring taxes and time value, the price of stock should:
A) decrease by the amount of the dividend immediately on declaration date.
B) decrease by the amount of the dividend immediately on ex-dividend date.
C) increase by the amount of the dividend immediately on declaration date.
D) increase by the amount of the dividend immediately on ex-dividend date.
E) Both B and C.
Correct Answer:
Verified
Q45: Dividends are relevant and dividend policy irrelevant
Q46: The Rent It Company declared a dividend
Q47: Murphy's has 10,000 shares outstanding with a
Q48: The dividend-irrelevance proposition of Miller and Modigliani
Q49: Murphy's has 10,000 shares outstanding with a
Q51: Homemade dividends are described by Modigliani and
Q52: The KatyDid Co.is paying a £1.25 per
Q54: A reverse split is when:
A)the share price
Q55: You own 300 shares of Abco.The company
Q57: You owned 200 shares last year and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents