Sorsi Has Declared a 15% Stock Dividend

question 52

Multiple Choice

Sorsi has declared a 15% stock dividend. If the stock was selling for $34 before the ex-dividend date, what should its price be on the ex-dividend date?

• A) $34.00
• B) $29.57
• C) $28.90
• D) $30.91

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Definitions:

Excludable

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission or payment.

Rival

An entity competing against another in the same market, striving for a greater share of assets, customers, or recognition.

Nonexcludable

A property of a good where it is not possible to prevent individuals from consuming the good, regardless of whether they have paid for it.

Clean Water

Water that is free from pollutants and contaminants, making it safe for human consumption and use.