Comox Cookie Co. has a share price of $37.50 when it decides to make a dividend payment

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Question:

Comox Cookie Co. has a share price of $37.50 when it decides to make a dividend payment of $1.25 per share. Assuming perfect capital markets, what should the price of Comox Cookie be once the stock begins trading ex-dividend? $38.75 $36.25 $37.50 $35