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Monica holds 100 shares in Nuvartis whose stock price is $25. Nuvartis has announced that it will pay a $2 dividend to all shareholders on
Monica holds 100 shares in Nuvartis whose stock price is $25. Nuvartis has announced that it will pay a $2 dividend to all shareholders on the record as of May 14 and that the stock goes ex-dividend on May 12. Monica is on the record, and would prefer a dividend of $3 per share instead of $2 per share. Which of the following actions would you suggest for Monica just after the stock goes ex-dividend? Assume perfect markets.
| Buy 4 shares of the firm |
| Sell 4 shares of the firm |
| Sell 4.35 shares of the firm |
| Buy 4.35 shares of the firm |
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