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16 July, 22:28

Your portfolio is 230 shares of Barden, Inc. The stock currently sells for $93 per share. The company has announced a dividend of $2.40 per share with an ex-dividend date of April 19. Assuming no taxes, how much will your stock be worth on April 19? (Do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.) Stock value $

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  1. 16 July, 23:20
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    Your stock will be valued in $20,838.

    Explanation:

    If there are no taxes, it is expected that the value of the stock will lower the amount of the dividend. That means

    Stock price (April 19) = stock price - dividend = 93-2.4=90.6 $/share

    In this case, your stock of 230 shares will be valued as

    Stock value = Stock share * stock price = 230 shares * $90.6/share

    Stock value = $ 20,838

    Your stock will be valued in $20,838.
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