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lieatien? ABC Co is an all equily firm lis current stuck price is 41,95 and it has 2 million shares outstanding Oni I November, ABC
lieatien? ABC Co is an all equily firm lis current stuck price is 41,95 and it has 2 million shares outstanding Oni I November, ABC anneunces that il vill pay a dividend of 40.20 per share, the ex-dividend date is 15 November the dividend will be pald on 25 Novernber, 21 Gther lhings equat, what will ABC's stock price be after the planned dividend payout? 11 manki 2.2 On which date will the stoek price drop? (1 mark) 2.3 5uppose ABC cancels the dividend and announces that it will use the money to repurchase shareg, Assume a perfect capital market, What happens to the stock price on the announcement date 11 markl 2,4 l low many shares can ABC buy back? [2 marks] 2.5. What's the likely answer to question 2.3 if there is information asymmetry? Explain why. [1 marki
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