Which of the Following Is Correct

question 10

Multiple Choice

Which of the following is correct?

• A)Stock prices increase as the next dividend approaches and then fall by the present value of that dividend once the stock goes ex-dividend.
• B)Stock prices decrease as the next dividend approaches and then fall by the present value of that dividend once the stock goes ex-dividend.
• C)Stock prices increase as the next dividend approaches and then increase by the present value of that dividend once the stock goes ex-dividend.
• D)None of these.