173 Stock prices around dividend.

AtlantisManufacturing, Inc. issues the following pressrelease: "Atlantis Manufacturing will pay a quarterly dividend of $1.30per share to record holders as of the12thof this month on the26th

of thismonth." The company made this announcement onNovember5,2014. There is atwo-day settlement for stock transactions. Determine what the stock price of Atlantis Manufacturing will be after the cash dividend announcement in a world of no taxes. Assume the current price is $49.33per share and the price does not change betweenNovember5,2014andNovember26,2014other than for the cash dividend. On what day does the pricechange? What is the cost to a buyer after theannouncement? What is the sales revenue to a seller after theannouncement?

(5-part answer)