ACG has 1 million common shares which are currently selling for $20 per share. The company recently announced dividend payment of $1.50 per share. Assume that the average investor pays a personal marginal tax rate of 29% on dividend income. How do we expect the share price to behave on the ex-dividend date?

The share price will decrease by about $1.065

The share price will decrease by about $1.50.

The share price will increase by about $1.065.

The share price will increase by about $1.50.

The share price will remain unchanged