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In a world of no taxes, free and universal information, and no financial market imperfections,...

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Finance

In a world of no taxes, free and universal information, and no financial market imperfections, the price of a share of stock should respond to the payment of a dividend by:

A. Increasing by the amount of the dividend.

B. Remaining unchanged.

C. Not enough information to determine.

D. Decreasing by the amount of the dividend.

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