Two Weeks Ago, Jensen's Declared a Dividend of $1

question 80

Multiple Choice

Two weeks ago, Jensen's declared a dividend of $1.34 a share.The ex-dividend date is tomorrow.All else constant, which one of the following is the best estimate of Jensen's opening stock price tomorrow?

• A)$1.34 lower than today's closing price
• B)Today's closing price minus an amount approximately equal to the aftertax value of the dividend
• C)The same as today's closing price since the dividend is expected
• D)$1.34 higher than today's closing price
• E)Today's closing price plus an amount approximately equal to the aftertax value of the dividend

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