On Thursday, February 7, Baretta Pistols Inc declared a $0.75 per shar

On Thursday, February 7, Baretta Pistols Inc declared a $0.75 per share dividend to be paid on Monday, April 15; the date of record will be Thursday, March 18. Baretta’s stock closed $17.25 on the last cum-dividend date.

What will the opening price be on the ex-dividend date? (Assume perfect markets.)
A) $15.75
B) $16.50
C) $17.50
D) $17.25
E) $18.00

ANSWER

B