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

Question

Quizplus · Accepted Answer

P_ex represents the price per share after a dividend is paid. P_cum represents the price per share before a dividend is paid. Subtracting the price per share after the dividend (P_ex) from the price per share before the dividend (P_cum) gives the dividend amount. Therefore, the term P_ex refers to the price per share after a dividend is paid.

Consider the Following Equation: Pcum - Pex = Div ×

Consider the Following Equation: P_cum - P_ex= Div ×