On March 23, 2011, the board of directors of Mycroft Company declared a quarterly cash dividend on its $1 par common stock of $0 50 per share, payable on May 10, 2011, to the shareholders of record on April 14, 2011 Before April 9, Mycrofts shares traded in the stock market with dividend, meaning t...

On the exdividend date Mycrofts shares should go down in price by the amount of the dividend from 3000 to 2950 per share This assumes that if the stock is worth 3000 with the expectation of receiving ...

On March 23, 2011, the board of directors of Mycroft Company declared a quarterly cash dividend on

Question:

On March 23, 2011, the board of directors of Mycroft Company declared a quarterly cash on its $1 par of $0.50 per share, payable on May 10, 2011, to the shareholders of record on April 14, 2011. Before April 9, Mycroft’s shares traded in the stock market “with meaning that the quoted stock price included the right to receive the After April 9, the shares traded “ex-dividend,” meaning that the quoted price did not include the right to receive the Before April 9, Mycroft’s shares were selling for $30 per share. What should happen to Mycroft’s stock price on April 9, the ex-dividend date? What should happen to Mycroft’s stock price on March 23, the declaration date?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...