Assume the current share price of Company A is $4.50 and on the following day these shares will begin trading ex-dividend.If the dividend is 40 cents per share fully franked,and the company tax rate is 30 per cent,what is the expected ex-dividend share price?
A)$4.10
B)$4.50
C)$3.93
D)$4.03

Question

Quizplus · Accepted Answer

The ex-dividend share price is calculated as the current share price minus the dividend per share. In this case, the dividend per share is 40 cents, so the ex-dividend share price is $4.50 - $0.40 = $4.10.

Assume the Current Share Price of Company a Is $4