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15. Why would the ex-dividend date associated with a stock be important to an investor who is considering purchasing the company’s common stock?

a. It is on this date that the firm determines which stockholders will receive the next dividend that will be paid.

b. On this date the market value of the stock drops by approximately the amount of the next dividend payment (per share).

c. This is the date that the firm pays the dividend.

d. This is the date the dividend becomes a liability to the firm.

e. This is the date the Board of Directors declares the amount of the next dividend payment.

The ex-dividend date is the date that the stock sells without the next dividend payment—that is, beginning on this date, investors who buy the stock will not receive the next dividend payment.

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