If There Are No Taxes on Dividends, Then the Price

question 76

True/False

If there are no taxes on dividends, then the price of a stock will not drop on the ex-dividend date.

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Definitions:

Increased By

A phrase indicating that a quantity has been added to, usually in the context of arithmetic operations or describing growth in a financial metric.

Increased By

An expression denoting an addition or increment in value or quantity.

HST

Harmonized Sales Tax; a combined tax in some Canadian provinces that merges the federal goods and services tax (GST) and provincial sales tax (PST).

Retail Price

The cost at which products are sold to the public, typically set higher than the wholesale price to include profit and expenses.