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A company's share is at ₹200 on declaration of dividend ₹50/share. Theoretical Ex-dividend price is:
A₹175
B₹150
C₹200
D₹250
Answer & Solution
Correct answer: B. ₹150
1. Theoretical ex-dividend price = Cum-dividend price − Dividend.
2. = ₹200 − ₹50.
3. Result = ₹150.
_Source: ICAI BoS CA Inter Paper 6A, Ch 8 "Dividend Decisions", §3_
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