Zack Marsh just noticed that shares of Boyd Bank were sold cum dividend last Monday. He checked

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Zack Marsh just noticed that shares of Boyd Bank were sold “cum dividend” last Monday. He checked the same shares on Wednesday and found that they were now being sold as “ex-dividend” at a lower price. Boyd Bank was doing well, and there was no reason for the share prices to go down significantly in two days. He has now come to you for advice. Explain how dividend distribution works and how it may affect share prices.

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Financial Management Principles And Applications

ISBN: 9781292222189

13th Global Edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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