Homework Answers
Answer 9)
The stock price = $ 10
The dividend paid = $ 1.50
Therefore the stock price ex-dividend = $ 10 - $ 1.50 = $
8.50
The stock price is adjusted downward by the amount of the dividend paid on ex-dividend date by the exchange where the stock trades.
This is because the dividends no longer accounted in the company and is deducted in the company's market cap.
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