3. Stocks that pay a high dividend are called ____________ stocks. Growth Large Cap Income Speculative...
3. Stocks that pay a high dividend are called ____________ stocks.
- Growth
- Large Cap
- Income
- Speculative
4. The stock price will fall by the amount of the dividend on the _____________.
- Declaration Date
- Ex Dividend Date
- Payment Date
- Record Date
5. What is the value of a right if the stock (including the right) sells for $60 and it takes four rights to buy stock for $40?
a) $4 b) $4.5 c) $5 d) $6.67
Homework Answers
3)stocks that tends to pay high dividend is called "Income stock " since they are providing income by way high dividend.
4)correct option is "b"- Ex Dividend Date
As soon as dividend is paid ,price of a stock goes ex dividend (that is price of stock falls by amount of dividend)
5)correct option is "c"-$ 5
Benefit due to right = 60-40 = $ 20
Price per right = 20/4 =$ 5 per right
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