Stock price around dividend.

AtlantisManufacturing, Inc. issues the following pressrelease: "Atlantis Manufacturing will pay a quarterly dividend of $0.50 per share to record holders as of the 12th of this month on the 26th of thismonth." The company made this announcement on November5,2014. There is atwo-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 $47.17 per share and the price does not change between November5,2014 and November26,2014 other than for the cash dividend. On what day does the pricechange? What is the cost to a buyer after theannouncement? What is the sales revenue to a seller after theannouncement?

On what day does the pricechange? (Select the bestresponse.)

A.

The price will be reduced by the amount of the dividend on November26,2014, the payment date.

B.

The price will be reduced by the amount of the dividend on November10,2014, theex-dividend date.

C.

The price will be reduced by the amount of the dividend on November5,2014, the declaration date.

D.

The price will be reduced by the amount of the dividend on November12,2014, the record date.

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

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

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

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