On April 4th, Forex Corporation announced that it would pay a dividend of $0.75 per share to

Question:

On April 4th, Forex announced that it would pay a of $0.75 per share to all shareholders that were on record as of April 11th, with checks being mailed on April 21st. Determine what the stock price of Forex will be after the cash announcement in a world of no taxes. Assume that the current price is $37.50 per share and that the price does not change between April 4 and April 21. On what day does the price change? What is the cost to a buyer after the announcement? What is the sales revenue to a seller after the announcement? Assume that stock settlements take 2 days.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...