Killnum corporation announces that the dividend for next, Ask an Expert

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Killnum Corporation announces that the dividend for next period will be $5.00 per share rather than the originally expected $2.50 per share. From then on, it is expected that dividends will resume the historical growth of 5% per year. What would you expect to happen to the price of their stock. Ignore tax effects.

a. The price will double

b. The price will likely rise by less than 100%

c. The price will likely fall

d. The price will remain unchanged.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91772094

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