In an Efficient Market, Ignoring Taxes and Time Value, the Price

question 7

Multiple Choice

In an efficient market, ignoring taxes and time value, the price of stock should:

• A)decrease by the amount of the dividend immediately on declaration date.
• B)decrease by the amount of the dividend immediately on ex-dividend date.
• C)increase by the amount of the dividend immediately on declaration date.
• D)increase by the amount of the dividend immediately on ex-dividend date.
• E)Both B and C.

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