Stock Price Ex Dividend Date
Not what you're looking for?
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?
Purchase this Solution
Solution Summary
The solution explains the impact on stock price on ex dividend date.
Solution Preview
The stock price would fall by the after tax dividend amount. The reason is ...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Motivation
This tests some key elements of major motivation theories.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.