Question
1You are comparing the dividend policies of three dividend-paying utilities. You have collected the following information on the ex-dividend behavior of these firms. NE Gas
1You are comparing the dividend policies of three dividend-paying utilities. You have collected the following information on the ex-dividend behavior of these firms.
NE Gas SE Bell Western Electric
Price before5070100
Price after486795
Dividends/share445
If you were a tax-exempt investor, which company would you use to make "dividend arbitrage" profits? How would you go about doing so?
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
