Question: Simon and Simon, makers of cell phones, has a history of paying dividend of $1 per share to their shareholders, Which of the following describes the likely response to the per share price of Simon and Simon, now trading at $9, with respect to the dividend?
a. The stock price will fall to $8 on the ex-dividend date
b. The stock price will stay at $9 per share
c. The stock price will fall to $8 on the record date
d. The stock price will rise to $10 on the ex-dividend date
e. The stock price will rise to $10 on the record date