Suppose that a stock pay a $5 dividend at time t. The dividend is announced at time

Question:

Suppose that a stock pay a $5 at time t. The is announced at time (t – 1), when the stock trades cum-dividend at a price of $100. What should be the ex-dividend price at time t? Explain your answer.
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...