The Ex-Dividend Date: ABC Co

question 33

Multiple Choice

The ex-dividend date: ABC Co. stock is currently trading at $25.70 per share. The company pays a regular cash dividend of $0.40 every quarter. Tomorrow is ex-dividend day for the upcoming regular dividend. The tax rate on dividends is 15 percent. Assuming there is no new information released about the company, how much do you expect the company's stock to trade for tomorrow?

• A) $0.40
• B) $25.24
• C) $25.30
• D) $25.36

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Definitions:

Higher Level

Refers to a more advanced, developed, or complex state or stage, often implying greater depth, sophistication, or authority.

Early Successes

Achievements or positive outcomes that occur at the beginning stages of a venture or project.

High Position

A status within an organization that carries a significant level of authority, responsibility, and influence over decision-making processes.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.