January 2018
Beginner
976 pages
142h 14m
English
The chapter opener described Whirlpool’s decision to dramatically increase its dividend in early 2017 to $1.10 per share. In the previous quarter, Whirlpool paid a dividend of $1 on March 15 to shareholders of record on March 3. When do you think the stock began trading ex dividend? The market price of Whirlpool stock just before the ex dividend date was $178.59. Immediately after the stock went ex dividend, the market price was $178.14. Is that price change surprising? Calculate the return that an investor might have earned if she had purchased the stock before the ex dividend date, sold the stock immediately afterward, and received the dividend a few weeks later.
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