Paying dividend of per share to their shareholders

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Reference no: EM131595848

Simon and Simon, makers of cell phones, has a history of paying dividend of $1 per share to their shareholders, Which of the following describes the likely response to the per share price of Simon and Simon, now trading at $9, with respect to the dividend?

a. The stock price will fall to $8 on the ex-dividend date

b. The stock price will stay at $9 per share

c. The stock price will fall to $8 on the record date

d. The stock price will rise to $10 on the ex-dividend date

e. The stock price will rise to $10 on the record date

Reference no: EM131595848

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