1. A stock is trading for $20 per share and then issues a $2 cash dividend. The price will decrease to $18 per share:

(a) on the Declaration Date (b) on the Ex-dividend Date (c) on the Date of Record (d) On the Distribution Date

2. If you own 100 shares of stock trading for $10, and the company does a 3-for-2 stock, the value of each share:

(a) increases 50% (price x 3/2) (b) decreases 33.3% (price x 2/3) (c) is not affected

3. A company has annual net income of $5 million, 1 million shares outstanding, and trades for 15 times earnings. The company then splits its shares 2-for-1. What is its share price after the split?

(a) $5.00 (b) $15.00 (c) $37.50 (d) $75.00