XYZ Declared a Dividend of $0

question 31

Multiple Choice

XYZ declared a dividend of $0.80 a share.The ex-dividend date is tomorrow.All else constant,you would expect the opening price tomorrow morning to be:

• A)lower by an amount approximately equal to the after-tax value of the dividend
• B)the same as today's closing price since the dividend is expected
• C)$0.80 lower than today's closing price
• D)higher by an amount approximately equal to the after-tax value of the dividend
• E)$0.80 higher than today's closing price

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Definitions:

Pharynx

The muscular tube that connects the mouth and nasal cavity to the larynx and esophagus, serving both the respiratory and digestive systems.

Primary Bronchi

The major air passages that branch off from the trachea and enter the lungs to facilitate breathing.

Voice Box

The part of the air passage to the lungs that holds the vocal cords; it is responsible for producing sound.

Larynx

The voice box located in the throat, involved in breathing, producing sound, and protecting the trachea against food aspiration.