Your Company Has Announced a Dividend of $2

question 7

Multiple Choice

Your company has announced a dividend of $2.50 per share. You and the rest of the marginal investors are in the 35% tax bracket. What should happen to the stock price?

• A) the price of stock should decrease by $1.625 per share immediately after the date of record.
• B) the price of stock should decrease by $1.625 per share immediately after the ex-dividend date.
• C) the price of stock should decrease by $3.85 per share immediately after the date of record.
• D) the price of stock should decrease by $3.85 per share immediately after the ex-dividend date.

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Definitions:

1960s and 1970s

Decades known for significant social change, civil rights movements, and cultural revolutions around the world.

Organization Life

Refers to the cyclical stages through which an organization passes, including inception, growth, maturity, and decline or renewal.

Organizational Culture

The set of shared values, beliefs, and practices that characterizes an organization and influences its members' behavior.

Communication Activities

Actions or processes involved in transmitting information, ideas, or feelings between individuals or groups.