The ohio freight co common stock is selling for 80 the day, Ask an Expert

Finance

The Ohio Freight co. common stock is selling for $80 the day before the stock goes ex-dividend. The annual dividend yield is 5.4%, and the dividends are distributed quarterly.

a. Based solely on the impact of the cash dividend, by how much should the stock go down on the ex-dividend date?

b. What will the new price of the stock be? (Round your intermediate and final answer to 2 decimal places)

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