If on January 2, 2008, a Company Declares a Dividend

question 42

True/False

If on January 2, 2008, a company declares a dividend of $1.50 per share, payable on January 31, 2008, to holders of record on January 17, then the price of the stock should drop by approximately $1.50 on January 15, which is the ex-dividend date.

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Definitions:

Porphyrin Ring

A large, heterocyclic macrocycle composed of four modified pyrrole subunits interconnected via methine bridges, central to the function of molecules like hemoglobin and chlorophyll.

Methyl Group

A nonpolar functional group; abbreviated CH3.

Magnesium Ion

Magnesium ion is a positively charged ion essential for many cellular processes, including enzyme activity, energy production, and neurotransmission.

Phosphate Group

A chemical group consisting of a phosphorus atom bound to four oxygen atoms, important in energy transfer and molecular structure in biological systems.