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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
2. 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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