Toronto Skaters Company Has Just Declared Its Regular Dividend of $1

question 21

Multiple Choice

Toronto Skaters Company has just declared its regular dividend of $1 per share.On March 1,the stock traded at $5 per share.The next day,the ex-dividend date,what do we expect to see?

• A) The stock price fall by $1.
• B) The stock price fall by less than $1 due to investor taxes.
• C) The stock price fall by more than $1 due to investor taxes.
• D) The stock price rise by less than $1 due to investor taxes.

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