Question: StableCo is declaring a regular $1 per share quarterly dividend. This will be the first dividend they have ever paid. Their share price is currently

StableCo is declaring a regular $1 per share quarterly dividend. This will be the first dividend they have ever paid. Their share price is currently $27. They will be announcing this dividend on December 1st. The dividend date is December 5th and the ex dividend date is December 6th.

a. Would you expect that StableCos share price would go up or down on December 1st?

b. Would you expect that StableCos share price would go up or down on December 6th? By approximately how much?

c. What does the fact that StableCo is declaring a regular dividend tell you about their future growth prospects and investment opportunities?

d. Give two reasons you might not be happy about this development as a StableCo shareholder.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

30 points. StableCo is declaring a regular $1 per share quarterly dividend. This will be the first dividend they have ever paid. Their share price is currently $27. They will be announcing this...

StableCo is declaring a regular $1 per share quarterly dividend. This will be the first dividend they have ever paid. Their share price is currently $27. They will be announcing this dividend on...

Plzz help me with this question. Thank you . I will give two upvotes immediately 2. 30 points. StableCo is declaring a regular $1 per share quarterly dividend. This will be the first dividend they...

StableCo is declaring a regular $1 per share quarterly dividend. This will be the first dividend they have ever paid. Their share price is currently $27. They will be announcing this dividend on...

FINIFOF - FUNDAMENTALS OF FINANCE - ASSIGNMENT Geelong Manufacturing Company Ltd Balance Sheet as at 31/12/20 ASSETS Notes 110 Cash Accounts Receivable Inventory Property, plant & equipment 130 180...

I was able to answer most of the questions but after that I'm lost. If someone could help walk me through these it would be greatly appreciated. My prof gave the class the first part of the last...

1. Multiply 23 *12 using 8 bit model booths algorithm. 2. Multiply -23 *22 using 8 bit model booths algorithm. 3. Represent 12.625 using floating point 14 bit revised model 4. Represent -6.8125 using...

Describe the differences between process costing and job-order costing.

Saddleback Company makes camping lanterns using a single producti on process. All direct materials are added at the beginning of the manufacturing process. Information for the month of March follows:...

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

2. Articles on Public-Sector Unionism. The Public Service Research Foundation, a private nonprofit organization, makes available papers and pamphlets that address a variety of issues related to...

2. Since the Priority Consideration under Article 22, Section 13 is included by the parties as a solution to a selection violation, is this priority selection the proper remedy? Why? Why not? At the...

3. What would be your ruling if the plant in Memphis had no union? Explain. TerryWilliams is an employee at a unionized plant in Memphis, Tennessee. Williams is a member of and represented by Local...