Timothy and Janet are contemplating to buy some stock in Cherryville Inc. Cherryville's stock will go ex-dividend in two days' time. The current share price is $35 per share and the dividend declared is $1.50 per share. Timothy decides to buy shares today while Janet postponed her purchase to 4 days later.

Briefly discuss Timothy and Janet's respective motivations for timing their purchase the way they did. Assuming all other factors remain unchanged, does their decision materially affect their respective wealth?

Answer rating: 100% (QA)

Answer Timothy and Janets decisions on the timing of their stock purchases in Cherryville Inc can be ... View the full answer