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ABC Corp's shares trade at $35 per share. Tomorrow is the ex dividend date for a...

ABC Corp's shares trade at $35 per share. Tomorrow is the ex dividend date for a cash dividend of $4 per share. If nothing else interesting happens, what should ABC's share price be at the close of the markets tomorrow?

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Answer #1

Tomorrow the share will trade at the price without the dividends.

Ex-dividend Price = Share Price - Dividend = $35 - $4 = $31

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