The common stock of Gallaghan's closed at $36.80 a share today. Tomorrow morning, the stock goes ex-dividend. The dividend that is being paid this quarter is $1.40 a share. The tax rate on dividends is 15 percent. All else equal, what should the opening stock price be tomorrow morning?
A) $35.19
B) $35.40
C) $35.52
D) $35.61
E) $35.70
Correct Answer:
Verified
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