Using the information in Problem 1, determine what the stock price of Atlantis Manufacturing will be after the cash dividend announcement in a world of no taxes Assume that the current price is $47 12 per share and that the price does not change between July 3 and July 20 On what day does the price...

Following the dividend announcement the price will stay the same The price ...

Using the information in Problem 1, determine what the stock price of Atlantis Manufacturing will be after

Question:

Using the information in Problem 1, determine what the stock price of Atlantis Manufacturing will be after the cash announcement in a world of no taxes. Assume that the current price is $47.12 per share and that the price does not change between July 3 and July 20. 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?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...