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3. Seashore Salt Co. has surplus cash. Its CFO decides to pay back $4 per share to investors by initiating a regular dividend of $1

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3. Seashore Salt Co. has surplus cash. Its CFO decides to pay back $4 per share to investors by initiating a regular dividend of $1 per quarter or $4 per year. The stock price jumps to $90 when the payout is announced. (6 marks, 3 each) a. Why does the stock price increase? b. What happens to the stock price when the stock goes ex dividend

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