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Emmenthaler S.A. ADRS pay a dividend of​ $2.50 per share. All things​ equal, one would expect...

Emmenthaler S.A. ADRS pay a dividend of​ $2.50 per share. All things​ equal, one would expect the price to drop by approximately​ $2.50 on the

A. ex-dividend date

B. date of record

C. purchase date

D. payment date

Solutions

Expert Solution

Choose A

Because on the ex dividend date, there is no chance for new investors to receive the dividends. So the share price will fall by the same amount.

Date of record means the investor should be listed on the company books on the issue date kf dividends.

Purchase date measn buying the stock

Payment date is the date on which the dividends are paid to investros.

jeff jeffy answered 2 years ago
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