Question: QUESTION 6 (20 marks) (a) ABC Ltd pays fully franked dividends. The company announces that its next dividend per share will increase. The market was

QUESTION 6 (20 marks) (a) ABC Ltd pays fully franked dividends.

QUESTION 6 (20 marks) (a) ABC Ltd pays fully franked dividends. The company announces that its next dividend per share will increase. The market was not expecting this increase. i. Explain the effect of the dividend announcement on the company's share price. (5 marks) ii. Explain what would happen to the share price on the ex-dividend date, assuming no other events

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