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Financial market imperfections

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Reference no: EM133114402

In a world of no taxes, free and universal information, and no financial market imperfections, the price of a share of stock should respond to the payment of a dividend by:

a) Increasing by the amount of the dividend.

b) Remaining unchanged.

c) Not enough information to determine.

d) Decreasing by the amount of the dividend.

Reference no: EM133114402

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