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VU Projects Video Lectures Handouts Past Papers Quizzes Assignment,GDB Members SMS Service FB Page

FIN622 - Corporate Finance GDB 2 closing date 18 jan 2016

The board of directors of the Company ABC has declared a cash dividend of Rs.2 per share to be paid to the holders on February 3, 2016. The stock is trading at Rs.40 before this announcement. The ex-dividend date announced by the exchange is January 19, 2016.

You are required to discuss the following:

  1. What would be the expected cum-dividend price per share and to which date the share will be traded cum-dividend?
  2. What change would you expect in the price per share on the ex-dividend day?
  3. Consider an investor buys the stock on ex-dividend day; will he be entitled to receive the dividend?

Special Note:

  • Your answer should be to the point and based on logical facts.

Note:

For acquiring the relevant knowledge watch the course video lectures, consult recommended books, and study additional material available online or in any other mode.



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