Annas Pretzels announced that on May 1, 2004, that it will pay a dividend of $5.00 per share on June 15 to all holders on record as of May 31st. The firm's stock price is currently at $70 per share. Assume that all investors are in the 33% tax bracket. Given that the ex-dividend date is May 29, what should happen to Anna's stock price on May 29?© BrainMass Inc. brainmass.com June 3, 2020, 11:52 pm ad1c9bdddf
The stock price would fall by the after tax dividend amount. The reason is ...
The solution explains the impact on stock price on ex dividend date.