On the morning of March 15, Decker Marketing Inc. announced that it will pay its first dividend

Question:

On the morning of March 15, Decker Marketing Inc. announced that it will pay its first of $5 this year. The ex-dividend date will be July 3.
a. If the announcement is a complete surprise to the market, what do you expect will happen to the stock price on March 15?
b. If the announcement has been forecasted by the financial analysts, what do you expect to happen to the stock price on March 15?
c. What do you expect to happen to the price of Decker Marketing Inc. on July 3?

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...