Which of the following variables would not influence the ex-dividend price of a share of stock at time t?
A)i₁ᵉt₊₁
B)i₁t
C)$Dᵉt₊₁
D)none of the above

Question

Quizplus · Accepted Answer

The ex-dividend price of a share of stock at time t is the price at which the stock begins trading without the value of its next dividend included. This price is influenced by any dividends that have been declared but not yet paid (i.e., $Dᵉt₊₁), as well as any changes in the current stock price (i.e., i₁t) or the stock's required rate of return (i.e., i₁ᵉt₊₁). Therefore, all of the variables listed in the answer choices could potentially influence the ex-dividend price.

Which of the Following Variables Would Not Influence the Ex-Dividend