The Common Stock of White's Hardware Closed at $42

question 53

Multiple Choice

The common stock of White's Hardware closed at $42.15 a share today.Tomorrow morning,the stock goes ex-dividend.The dividend that is being paid this quarter is $1.26 a share.Assume the tax rate on dividends is 15 percent.All else equal,what should the opening stock price be tomorrow morning?

• A)$42.15
• B)$40.94
• C)$40.89
• D)$41.08
• E)$41.23

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Definitions:

Autonomic Nervous System

A part of the nervous system that controls involuntary functions of the body, such as heart rate, digestion, and respiratory rate.

Stressful Events

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Oversensitivity

An exaggerated response in emotion or feeling to external stimuli or situations, often leading to discomfort.

Illness Anxiety Disorder

A psychiatric disorder characterized by excessive worry about having a serious, undiagnosed medical illness, despite few or no medical symptoms.