On the Date of Record the Share Price Drop Is

question 36

Multiple Choice

On the date of record the share price drop is:

• A)a full adjustment for the dividend payment.
• B)a partial adjustment for the dividend payment because of the tax effect.
• C)zero because it happens on ex-dividend date.
• D)zero because it happens on payment date.
• E)None of the above.

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Definitions:

Price

The amount of money or its equivalent required to purchase a good, service, or asset, acting as a reflection of its value.

Pizza Sellers

Businesses or individuals that sell pizza to consumers.

Hamburger Sellers

Businesses or individuals involved in the selling of hamburgers, often used as an example in economic models.

Total Revenues

The total income that a firm receives from the sale of its goods and services.