Your company has declared a dividend of 2.50 per share. you, Ask an Expert

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Your company has announced a dividend of $2.50 per share. You and the rest of the marginal investors are in the 35% tax bracket. What should happen to the stock price?

a. The price of stock should decrease by $1.625 on the date of record.
b. The price of stock should decrease by $1.625 on the ex-dividend date.
c. The price of stock should decrease by $3.85 on the date of record.
d. The price of stock should decrease by $3.85 on the ex-dividend date.
e. Both B and C.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9290608

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