Foundations of Financial Management
Foundations of Financial Management
16th Edition
ISBN: 9781259277160
Author: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Publisher: McGraw-Hill Education
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Chapter 18, Problem 12P
Summary Introduction

To explain:The amount by which the stock should go down on the ex-dividend date and the new price of the stock.

Introduction:

Dividend:

The portion of a company’s profits that the board decides to distribute to the shareholders is termed as dividend. It can be paid in terms of cash or stock.

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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY