On the Date of Record,the Stock Price Drop Related to the Dividend

question 16

Multiple Choice

On the date of record,the stock price drop related to the dividend 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 the adjustment occurs on the ex-dividend date.
• D)zero because the adjustment occurs on the payment date.
• E)generally greater than the dividend amount.

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Definitions:

Carboxylic Acid

Organic compounds containing a carboxyl group (-COOH), characterized by their acidic properties and widespread occurrence in nature.

13C NMR Spectrum

A representation of the nuclear magnetic resonance of carbon-13 atoms within a molecule, revealing the distinct chemical environments of carbon atoms.

Carbonyl Carbon

The carbonyl carbon is the carbon atom of a carbonyl group (C=O), doubly bonded to an oxygen atom and bonded to two other atoms or groups, which can vary depending on the specific carbonyl compound (e.g., aldehydes, ketones).

Cyclohexylacetic Acid

An organic compound featuring a cyclohexane ring attached to an acetic acid group, used in the synthesis of various pharmaceuticals and chemical products.