Question
A company declares a dividend of 35 cents per share, which was payable on 14 September. Immediately prior to the declaration of the dividend, the
A company declares a dividend of 35 cents per share, which was payable on 14 September. Immediately prior to the declaration of the dividend, the share price was $4.79. At the close of trading on the stock exchange on 13 September, the share price was $5.44. What is the theoretical ex-dividend price of the share?
$4.44
$4.79
$5.09
$5.79
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
