The Empirical Observation That Stock Prices Fall on Ex-Dividend Days

question 23

Multiple Choice

The empirical observation that stock prices fall on ex-dividend days by significantly less than the amount of the dividend has been often interpreted

• A) as completely unexplainable by researchers.
• B) as evidence that dividends are more highly valued than capital gains.
• C) as evidence of a tax effect in dividend valuation.
• D) none of the above.

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Definitions:

Vision and Mission

Fundamental organizational statements where the vision articulates the desired future state and the mission describes the organization's purpose.

Succession Problem

The challenge an organization faces in identifying and preparing new leaders to replace those who are leaving.

Equally Capable

Being as competent or skilled in particular tasks or fields as others.

General Managers

Managers who are responsible for complex, multifunctional units.