Conlin Containers announces that on June 1, 1998, it will pay a dividend of $3.00 per share

Question:

Conlin Containers announces that on June 1, 1998, it will pay a of $3.00 per share on July 15 to all holders on record as of June 30. The firm's stock price is currently at $50 per share. Assume that all investors are in the 28% tax bracket. Given that the ex-dividend date is June 26, what should happen to Collin’s stock price on June 26?

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...