Dividend and Stock Prices: Your portfolio is 300 shares of Blue Morning, Inc. The stock currently sells for $100 per share. The company has announced a dividend of $3.00 per share with an ex-dividend date of April 19th. Assuming no taxes, how much will your stock be worth on April 19th? Dividend and Stock Prices: It is April 19th. Based on the aforementioned information, what is your total portfolio value?
With no taxes we would expect the stock price to drop by exactly the amount of the dividend, so the new stock price will be:
New stock price = $100.00 - $3.00 = $97.00
Your total stock investment will be worth:
Stock value = 300 × $97.00 = $29,100
Dividend and Stock Prices: Your portfolio is 300 shares of Blue Morning, Inc. The stock currently...