You are comparing the dividend policies of three dividend-paying utilities. You have collected the following information on the ex-dividend behavior of these firms.
|
NE Gas
|
SE Bell
|
Western Electric
|
Price before
|
50
|
70
|
100
|
Price after
|
48
|
67
|
95
|
Dividends/share
|
4
|
4
|
5
|
If you were a tax-exempt investor, which company would you use to make "dividend arbitrage" profits? How would you go about doing so?