The price of a share of stock is $15.00 on Tuesday, November 14, 2017. The record date

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The price of a share of stock is $15.00 on Tuesday, November 14, 2017. The record date for a $0.50 dividend is Friday, November 17, 2017. If there are no taxes on dividends, what would you expect the price of a share to be on each day from November 14 through 17 if no other information relevant to the price of the shares becomes public?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamentals of Corporate Finance

ISBN: 978-1119371403

4th edition

Authors: Robert Parrino, David S. Kidwell, Thomas Bates

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