In an efficient market, ignoring taxes and time value:
A) the price of stock should decrease by the amount of the dividend immediately on declaration date.
B) the price of stock should decrease by the amount of the dividend immediately on ex-dividend date.
C) the price of stock should increase by the amount of the dividend immediately on declaration date.
D) the price of stock should increase by the amount of the dividend immediately on ex-dividend date.
Correct Answer:
Verified
Q5: Which of the following is true?
A) A
Q7: A dividend is usually a cash distribution
Q8: Homemade dividends are described by Modigliani and
Q11: A firm plans to pay dividends of
Q12: The important relationship between the ex-dividend date
Q13: On the date of record the stock
Q14: The date on which the board of
Q14: Which of the following lists events in
Q42: You purchased 200 shares of ABC stock
Q53: The KatyDid Co. is paying a $1.25
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