Consider the following equation: P_cum - P_ex= Div × The term P_ex is

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Quizplus · Accepted Answer

P_ex refers to the price per share after a dividend is paid, while P_cum refers to the price per share before a dividend is paid. The difference between these two prices represents the value of the dividend. Therefore, subtracting P_ex from P_cum gives the dividend per share. On the left side of the equation, we have the value of the dividend received by shareholders, and on the right side, we have the product of the number of shares outstanding and the amount of the dividend per share. Therefore, this equation represents the payment of a dividend by a corporation to its shareholders.

Consider the Following Equation: Pcum - Pex = Div ×

Consider the Following Equation: P_cum - P_ex= Div ×