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c17 q3 please help with parts 1 to 5 Stock price around dividend. Atlantis Manufacturing, Inc. issues the following press release: Atlantis Manufacturing will pay
c17 q3 please help with parts 1 to 5
Stock price around dividend. Atlantis Manufacturing, Inc. issues the following press release: "Atlantis Manufacturing will pay a quarterly dividend of $1.10 per share to record holders as of the 12th of this month on the 26th of this month." The company made this announcement on November 5, 2014. There is a two-day settlement for stock transactions. Determine what the stock price of Atlantis Manufacturing will be after the cash dividend announcement in a world of no taxes. Assume the current price is $48.89 per share and the price does not change between November 5 , 2014 and November 26, 2014 other than for the cash dividend. On what day does the price change? What is the cost to a buyer after the announcement? What is the sales revenue to a seller after the announcement? On what day does the price change? (Select the best response.) A. The price will be reduced by the amount of the dividend on November 26,2014 , the payment date. B. The price will be reduced by the amount of the dividend on November 10, 2014, the ex-dividend date. C. The price will be reduced by the amount of the dividend on November 5,2014 , the declaration date. D. The price will be reduced by the amount of the dividend on November 12,2014 , the record dateStep by Step Solution
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