Price of a share ex-dividend

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Suppose we live in a world in which Modgliani Miller is true, that is no information or tax issues and capital structure is irrelevant. A firm currently has 1,000 shares outstanding, each with a price of $14.7. The firm announces that it will pay a dividend of $1.25 per share. What will be the price of a share ex-dividend (that is after dividend has been paid)?

Reference no: EM133061062

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