2 of 11 3 Marks XYZ Inc. declared a dividend of $5.00 per share to be paid to the holders of record on November 20. This announcement was made on October 15. All the investors in this economy face a tax rate of 40% on dividend income. On the date of record the stock price: O a. Drops by 5.00 dollars (A full adjustment for the dividend payment), b. Drops by 2.00 dollars (A partial adjustment for the dividend payment because of the tax effect). Oc Drops by 3.00 dollars Od None of the options Clear my choice Unsure