You purchase 100 shares of stock for $20 per share cum dividend just before the market closes on Thursday. The ex-dividend date is Friday and the dividend is $1.50 per share. Assuming there are
No taxes, just after the market opens on Friday morning your total wealth (all else equal)
______________.
A) Will fall from the previous day's wealth by $300.
B) Will still be equal to $2,000.
C) Will fall from the previous day's wealth by $150.
D) Will increase by the amount of the dividend since you can now sell the stock for $18.50 per share and keep the dividend.
E) Will increase by the amount of the dividend received.
Correct Answer:
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