Question
N9 16-3. (Calculating the ex-dividend stock price) Fox Metal PLC has issued a press release declaring a dividend of 1.30 per share and the recording
N9
16-3. (Calculating the ex-dividend stock price) Fox Metal PLC has issued a press release declaring a dividend of 1.30 per share and the recording date as October 12 . James May bought 10 shares of Fox Metal on October 5 for 32 each. The Fox Metal PLC dividend policy suggests that the shareholders should be registered on the recording date to be eligi-ble for dividend. What type of shares did James May buy: ex-dividend or cum-dividend? How likely are the stock prices to change after the recording date? Why?
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
