Consider the following equation: P_cum - P_ex= Div × The term P_cum is: A) the personal tax rate for capital gains. B) the price per share after a dividend is paid. C) the price per share before a dividend is paid. D) the personal tax rate for dividend.

Question

Quizplus · Accepted Answer

P_cum refers to the price per share before a dividend is paid. This term represents the cumulative value of the stock, including any appreciation, whereas P_ex represents the ex-dividend price, which is the price per share after the dividend is paid.

Consider the Following Equation: Pcum - Pex = Div ×

Consider the Following Equation: P_cum - P_ex= Div ×