Question

Your portfolio is 290 shares of Callahan, Inc. The stock currently sells for $99 per share. The company has announced a dividend of $3.00 per share with an ex-dividend date of April 19. Assuming no taxes, how much will your stock be worth on April 19

Answer 1

Answer: $96

Explanation:

On the ex-dividend date, the stock price usually falls by the value of the dividend.

Value of stock on April 19 is:

= Value of stock - Dividend

= 99 - 3

= $96