Howard holds 3,000 shares in Bean, a firm with a stock price of $30. Bean has announced a dividend of $1.50 per share that will go ex-dividend tomorrow. Howard doesn’t need cash and so he’d prefer not to have any dividend. Which of the following is closest to the action would you suggest for Howard immediately after the stock goes ex-dividend? Assume perfect markets. Select one: a. Buy 163.64 shares of Bean b. Sell 36,000 shares of Bean c. Buy 272.73 shares of Bean d. Buy 157.90 shares of Bean e. Buy 36,000 shares of Bean
Howard holds 3,000 shares in Bean, a firm with a stock price of $30. Bean has announced a dividend of $1.50 per share that will go ex-dividend tomorrow. Howard doesn’t need cash and so he’d prefer not to have any dividend. Which of the following is closest to the action would you suggest for Howard immediately after the stock goes ex-dividend? Assume perfect markets. Select one: a. Buy 163.64 shares of Bean b. Sell 36,000 shares of Bean c. Buy 272.73 shares of Bean d. Buy 157.90 shares of Bean e. Buy 36,000 shares of Bean
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Howard holds 3,000 shares in Bean, a firm with a stock price of $30. Bean has announced a dividend of $1.50 per share that will go ex-dividend tomorrow. Howard doesn’t need cash and so he’d prefer not to have any dividend. Which of the following is closest to the action would you suggest for Howard immediately after the stock goes ex-dividend? Assume perfect markets.
Select one:
a.
Buy 163.64 shares of Bean
b.
Sell 36,000 shares of Bean
c.
Buy 272.73 shares of Bean
d.
Buy 157.90 shares of Bean
e.
Buy 36,000 shares of Bean
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