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Question 2 is 15 November; the dividend will be pald on 25 November. 2.1 Other things equal, what will ABC's stock price be after the

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Question 2 is 15 November; the dividend will be pald on 25 November. 2.1 Other things equal, what will ABC's stock price be after the ptanned dividend payoux? [1 mark] 2.2 On which date will the stock price drop? [1 mark] 2.3 Suppose ABC cancels the dividend and announces that it will use the money to repurchase shares. Assume a perfect capital market. What happens to the stock price on the announcement date? [1 mark] 2.4 How 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. 11 . nark]

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