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    Ohio Freight Company's

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    The Ohio Freight Company's common stock is selling for $40 the day before the stock goes ex-dividend. The annual dividend yield is 6.7 percent and dividends are distributed quarterly. Based solely on the impact of the cash dividend, by how much should the stock go down on the ex-dividend date? What will the new price of the stock be?

    © BrainMass Inc. brainmass.com October 9, 2019, 11:18 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/ohio-freight-companys-252357

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    Ex-dividends date and stock problem
    The Ohio Freight Company's common stock is selling for $40 the day before the stock goes ex-dividend. The annual dividend ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer by how much should the stock go down on the ex-dividend date.

    $2.19