Ex-dividend price refers to:
AAverage market price
BPrice including dividend
CPrice of preference shares
DPrice after dividend declaration but before payment
Answer & Solution
Correct answer: D. Price after dividend declaration but before payment
1. Ex-dividend = "without dividend rights".
2. On the ex-dividend date the share trades without the right to the upcoming dividend.
3. Price typically drops by approx the dividend amount.
_Source: ICAI BoS CA Inter Paper 6A, Ch 8 "Dividend Decisions", §2_