Which of the Following Is Correct

question 77

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 the options.

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Definitions:

Day-to-Day

Describes activities or tasks that occur on a regular, daily basis, often relating to routine or ordinary operations.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and is authorized to act as a single entity.

Officer

typically refers to a person holding a position of authority within an organization, especially within the military or law enforcement, but also in corporate and governmental contexts.

Proxy Materials

Documents that are distributed to shareholders in preparation for shareholders' meetings, usually including information necessary for making informed votes on corporate matters.