Which of the following is correct?
A) Stock prices increase as the next dividend approaches and then fall by the present value of that dividend once the stock goes ex-dividend.
B) Stock prices decrease as the next dividend approaches and then fall by the present value of that dividend once the stock goes ex-dividend.
C) Stock prices increase as the next dividend approaches and then increase by the present value of that dividend once the stock goes ex-dividend.
D) None of these.
Correct Answer:
Verified
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