You own 270 shares of stock in Halestorm, Incorporated, that currently sells for $83.80 per share. The company has announced a dividend of $3.50 per share with an ex-dividend date of February 4. Assuming no taxes, what is the value of the stock on February 4?

Question

BlackTom AI · Accepted Answer

Question restatement: You own 270 shares of Halestorm, Incorporated, priced at $83.80 per share. The company declares a dividend of $3.50 per share with an ex-dividend date of February 4. Ignoring taxes, what is the value of the stock on February 4? Answer options: "$80.30", "$79.25", "$82.05", "$87.30", "$83.80".

Step-by-step analysis of each option:
Option 1: $80.30. This matches the standard ex-dividend price adjustment. On the ex-dividend date, the stock price typically drops by the amount of the dividend per share, all else equal. Subtracting $3.50 from the pre-ex-dividend price of $83.80 yields $80.30. Therefore, this value reflects the expected price per share after the dividend is detached.

Option 2: $79.25. This would imply a drop of $4.55 from the pre-dividend price, which does not correspond to the $3.50 dividend. Since the dividend amount is known, a deduction of $4.55 would require an additional factor (like a large market move) that is not stated, making this option inconsistent with the straightforward ex-dividend adjustment.

Option 3: $82.05. This represents a smaller decrease of $1.75 from $83.80. Unless there is market movement exactly offsetting half of the dividend or some other adjustment, this value does not align with the typical ex-dividend mechanism where the price move equals the dividend per share.

Option 4: $87.30. This is an increase relative to the pre-ex-dividend price. An ex-dividend date generally does not cause the stock price to rise by the dividend amount; absent extraordinary positive news or other market effects, the price tends to stay the same or fall after the dividend is detached.

Option 5: $83.80. This would imply no price change on the ex-dividend date, which contradicts the standard market behavior that the stock price drops by the amount of the dividend on the ex-dividend date.

Synthesis and key takeaway: With an ex-dividend date of February 4 and a $3.50 per-share dividend, the expected price per share on that date, assuming taxes are not a factor and all else equal, is the pre-dividend price minus the dividend: $83.80 − $3.50 = $80.30. The other options either imply an incorrect amount of price change, a price increase, or no price change, none of which align with the conventional ex-dividend adjustment.

You own 270 shares of stock in Halestorm, Incorporated, that currently sells for $83.80 per share. The company has announced a dividend of $3.50 per share with an ex-dividend date of February 4. Assuming no taxes, what is the value of the stock on February 4?单项选择题

类似问题

What was the world's first widely adopted biodiversity policy?

The aim of the Paris Agreement is to ensure that the earth’s preindustrial temperature is not exceeded by more than º Celsius.

The IPCC's mission is to Blank ______.

Why have most international agreements for environmental protection been based on the honor system?

As was exhibited with the Montreal Protocol and the encouragement of reduced CFC production, trade can be an effective tool to compel compliance with international treaties.

The Stockholm Declaration and UNEP were the result of the Blank ______ first conference on the Human Environment in 1972.

In addition to the direct mission of the Convention on International Trade in Endangered Species (CITES), why was CITES so important?

President Trump hiring a corporate leader from the oil and gas industry to head the Department of Energy is an example of regulatory ; one intention behind this was to change environmental policy.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单