Stock price around dividend. Atlantis Manufacturing, Inc. issues the following press release: "Atlantis Manufacturing will pay a quarterly dividend of $$1\mathrm{.}20$ per

share to record holders as of the $10$th of this month on the $20$th of this month." The company made this announcement on July $3,2014.$ There is a two$-$day

settlement for stock transactions. Determine what the stock price of Atlantis Manufacturing will be after the cash dividend announcement in a world of no taxes.

Assume the current price is $$41\mathrm{.}17$ per share and the price does not change between July $3,2014$ and July $20,2014$ other than for the cash dividend. On what day

does the price change? What is the cost to a buyer after the announcement? What is the sales revenue to a seller after the announcement?

On what day does the price change? $($Select the best response.$)$

A$.$ The price will be reduced by the amount of the dividend on July $10,2014,$ the record date.

B$.$ The price will be reduced by the amount of the dividend on July $3,2014,$ the declaration date.

C$.$ The price will be reduced by the amount of the dividend on July $20,2014,$ the payment date.

D$.$ The price will be reduced by the amount of the dividend on July $8,2014,$ the ex$-$dividend date.

What is the net cost to a buyer before the ex$-$date?

$ $($Round to the nearest cent.$)$

What is the net proceeds to a seller before the ex$-$date?

$ $($Round to the nearest cent.$)$

What is the net cost to a buyer after the ex$-$date?

$ $($Round to the nearest cent.$)$

What is the net proceeds to a seller after the ex$-$date?