You are comparing the dividend policies of three


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?

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Accounting Basics: You are comparing the dividend policies of three
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