Danroy Inc Has Announced a $5 Dividend

question 14

Multiple Choice

Danroy Inc has announced a $5 dividend. If Danroy's last price while trading cum-dividend is $65, what should its first ex-dividend price be (assuming perfect capital markets) ?

• A)$75
• B)$60
• C)$65
• D)$70

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Definitions:

Radical Labor

A movement or approach within labor advocating for deep structural changes to the economic and social system, often focusing on workers' rights and class struggle.

Anticommunist Repression

Measures undertaken by governments or organizations to suppress or eliminate communist ideology and movements.

League of Nations

An international organization established after World War I under the Treaty of Versailles in 1919, intended to ensure world peace but was ultimately unable to prevent World War II.

Treaty of Versailles

The 1919 treaty that ended World War I, imposing heavy reparations and territorial losses on Germany, and reshaping the map of Europe.