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Which of the following is correct? Stock prices increase as the next dividend approaches and then fall by the present value of that dividend once

Which of the following is correct? Stock prices increase as the next dividend approaches and then fall by the present value of that dividend once the stock goes ex-dividend. Stock prices increase as the next dividend approaches and then increase by the present value of that dividend once the stock goes ex-dividend. Stock prices decrease as the next dividend approaches and then fall by the present value of that dividend once the stock goes ex-dividend. None of these.

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