Twelve Days Ago,DOG,Inc

question 31

Multiple Choice

Twelve days ago,DOG,Inc.declared a dividend of $1.34 a share.The ex-dividend date is tomorrow.All else constant,which one of the following is the best estimate of DOG,Inc.'s opening stock price tomorrow?

• A)$1.34 lower than today's closing price
• B)Today's closing price minus an amount approximately equal to the aftertax value of the dividend
• C)The same as today's closing price since the dividend is expected
• D)$1.34 higher than today's closing price
• E)Today's closing price plus an amount approximately equal to the aftertax value of the dividend

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Definitions:

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