All else constant which one of the following is the best


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

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Financial Management: All else constant which one of the following is the best
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