If on January 3,2015,a Company Declares a Dividend of $1

question 33

True/False

If on January 3,2015,a company declares a dividend of $1.50 per share,payable on January 31,2015,to holders of record on January 17,then the price of the stock should drop by approximately $1.50 on January 15,which is the ex-dividend date.

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Definitions:

Accounting Equation

Assets equal liabilities plus owners’ equity.