As the Number of Days Until the Next Dividend Decreases

question 3

Multiple Choice

As the number of days until the next dividend decreases, what will happen to the present value of the stock?

• A) It will decrease.
• B) It will increase.
• C) It will stay the same.
• D) One cannot determine what will happen to the price of the stock in this situation.

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Definitions:

Renin-Angiotensin

The renin-angiotensin system is a hormone system that regulates blood pressure and fluid balance in the body.

ADH Secretion

ADH secretion involves the release of antidiuretic hormone, also known as vasopressin, from the pituitary gland which helps regulate water balance in the body.

Carotid Sinuses

Dilated areas at the base of the internal carotid artery and the bifurcation of the common carotid artery which contain baroreceptors that help regulate blood pressure.

Blood Pressure

The force exerted by circulating blood against the walls of the body's arteries.