If on January 3, 2012, a Company Declares a Dividend

question 63

True/False

If on January 3, 2012, a company declares a dividend of $1.50 per share, payable on January 31, 2012, then the price of the stock should drop by approximate $1.50 on January 31.

---

Definitions:

Ethical Decisions

Choices made based on moral principles and values, often involving the discernment between right and wrong.

Utility Thinking

A system of thought that focuses the consequences to one person or institution and then weighs the cost against the benefits of performing the action under scrutiny.

Cost-Benefit

An analysis method that compares the anticipated or actual costs of an action to its benefits, aiming to determine its feasibility or value.

Negative Rights Theory

In ethics, the theory that says that rights are human inventions created to escape moral law.