Peabody Mining Companys common stock is selling for $50 the day before the stock goes ex-dividend. The

Question:

Peabody Mining Company’s is selling for $50 the day before the stock goes ex-dividend. The annual yield is 5.6 percent, and dividends are distributed quarterly. Based solely on the impact of the cash by how much should the stock go down on the ex-dividend date? What will the new price of the stock be?

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...