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XYZ Declared a Dividend of $0

Question 10

Multiple Choice

XYZ declared a dividend of $0.80 a share.The ex-dividend date is tomorrow.All else constant,you would expect the opening price tomorrow morning to be:


A) lower by an amount approximately equal to the after-tax value of the dividend
B) the same as today's closing price since the dividend is expected
C) $0.80 lower than today's closing price
D) higher by an amount approximately equal to the after-tax value of the dividend
E) $0.80 higher than today's closing price

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