Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Why do stock prices usually drop on a companys ex-dividend date? A. Paying a dividend is bad news B. They will no longer be able

Why do stock prices usually drop on a companys ex-dividend date?

A. Paying a dividend is bad news

B. They will no longer be able to deduct the dividend on their corporate tax return

C. The company no longer owns the amount of cash paid as the dividend

D. Investors wish their cash tied up for less than 2 days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Financial Management

Authors: Sudanshu Pandeya

1st Edition

1774695316, 978-1774695319

More Books

Students also viewed these Finance questions

Question

se integration by parts to find the integral. x ln x dx

Answered: 1 week ago