Danroy Inc Has Announced a $5 Dividend

question 62

Multiple Choice

Danroy Inc has announced a $5 dividend. If Danroy's last price while trading cum-dividend is $65,what should its first ex-dividend price be (assuming perfect capital markets) ?

• A) $75
• B) $65
• C) $60
• D) $70

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Definitions:

Displaced Workers

Individuals who have been laid off from their jobs because their positions have been eliminated, usually due to economic changes, technological advancements, or business restructuring.

New Jobs

Employment positions created within the economy that did not previously exist, contributing to workforce expansion.

Technological Change

The rate and direction of innovations and improvements in technology that affect productivity and economic growth.

Cluster

A group of similar things or people positioned or occurring closely together.