All Else Equal, the Market Value of a Stock Will

question 51

Multiple Choice

All else equal, the market value of a stock will tend to decrease by roughly the aftertax value of the dividend on the:

• A) dividend declaration date.
• B) ex-dividend date.
• C) date of record.
• D) date of payment.
• E) day after the date of payment.

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Definitions:

Production Possibilities

The different quantities of various goods and services that an economy can produce with given resources and technology.

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable.

Comparative Advantage

The ability of a country, individual, or firm to produce a particular good or service at a lower opportunity cost than others.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.