Estimate of jensen opening stock price tomorrow

Assignment Help Financial Management

Reference no: EM132011661

Two weeks ago, Jensen’s declared a dividend of $1.34 a share. The ex-dividend date is tomorrow. All else constant, which one of the following is the best estimate of Jensen’s opening stock price tomorrow?

$1.34 lower than today's closing price

Today's closing price minus an amount approximately equal to the aftertax value of the dividend

The same as today's closing price since the dividend is expected

$1.34 higher than today's closing price

Today's closing price plus an amount approximately equal to the aftertax value of the dividend

Reference no: EM132011661

Questions Cloud

Strengths and weaknesses in risk management processes : What do you see as BP’s strengths and weaknesses in its risk management processes?

Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.94 million.

Use as the initial investment in fixed assets : What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Minimum price hank would need to receive for his car : If he could get a price that would pay off the balance of his loan. What’s the minimum price Hank would need to receive for his car?

Estimate of jensen opening stock price tomorrow : All else constant, which one of the following is the best estimate of Jensen’s opening stock price tomorrow?

Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.55 million.

Calculate the beta of the stock : The standard deviation of return of the stock is 36% and that of the market portfolio is 25%. Calculate the beta of the stock.

What happens in the cash account during the year : The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year.

Bonds when stocks appear to perform so much better : Why do you think anybody invests in bonds when stocks appear to perform so much better?

User Account

All Pages