In general, market price of the stock is adjusted by the after-tax value of the dividend on: O ex-dividend date date of record date of payment day after the date of payment announcement day QUESTION 2 An investor is more likely to prefer a high dividend payout if: the firm has high flotation costs. has many positive net present value projects. the investor is tax exempt. the share price is increasing rapidly. none of above. QUESTION 3 o Which one of the following is not correct regarding the dividend clientele: there are certain groups that prefer low dividend payouts there are certain groups that prefer high dividend payouts with dividend policy, firm just swaps one clientele for another dividend payout is irrelevant when clientele exists certain groups clash for dividend payout policy