If Investors Do Not Like Dividends Because of the Additional

question 16

Multiple Choice

If investors do not like dividends because of the additional taxes that they have to pay, how would you expect stock prices to behave on the ex-dividend date?

• A)Fall by more than the amount of the dividend
• B)Fall exactly by the amount of the dividend
• C)Fall by less than the amount of the dividend
• D)Cannot be predicted.

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Definitions:

Construction Lien

A claim made against a property by a contractor or subcontractor who has not been paid for work performed or materials supplied.

Building Contract

A legally binding agreement between a property owner and a contractor for the construction or renovation of a building, detailing the work to be done, materials, costs, and timeframes.

Hold Back

The act of withholding part of a payment or benefit until certain conditions are met or to exert control or influence over a situation.