Question
Two weeks ago, Larry's Hardware declared a dividend of $0.50 a share. The ex-dividend date is tomorrow. All else constant, which one of the following
Two weeks ago, Larry's Hardware declared a dividend of $0.50 a share. The ex-dividend date is tomorrow. All else constant, which one of the following is the best estimate of Larry's opening stock price tomorrow? $0.50 lower than today's closing price. $0.50 higher than today's closing price. Today's closing price plus an amount approximately equal to the after-tax value of the dividend The same as today's closing price since the dividend is expected. Today's closing price minus an amount approximately equal to the after-tax value of the dividend.
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