Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 9

Dividend dates-market price effects O'Garro, Inc., has paid a regular quarterly cash dividend of $0.70 per share for several years. The common stock is publicly traded. On February 21 of the current year, O'Garro's board of directors declared the regular first-quarter dividend of $0.70 per share payable on March 30 to stockholders of record on March 15.
Required:
As a result of this dividend action, state what you would expect to happen to the market price of the common stock of O'Garro, Inc., on each of the following dates. Explain your answers.
a. February 21.
b. March 13.
c. March 15.
d. March 30.