Final answer:
The ex-dividend stock price of Bowzer Company would be approximately $76.88, derived by subtracting the special dividend per share from the current stock price of $86.09.
"The correct option is approximately option D"
Step-by-step explanation:
To calculate the ex-dividend stock price of Bowzer Company after it issues a special dividend from the proceeds of a division sale, we must first determine the total dividend amount. The company received $4.1 million from the sale. Assuming they distribute this entire amount as a dividend, and given that there are 445,000 shares outstanding, the dividend per share is calculated as $4,100,000 รท 445,000, which equals approximately $9.21 per share.
Since the stock price is expected to drop by the amount of the dividend once the stock goes ex-dividend, we can determine the new stock price by subtracting the dividend per share from the current stock price. The current stock price is $86.09, so the anticipated ex-dividend stock price is $86.09 - $9.21, leading to an ex-dividend stock price of approximately $76.88.
This calculation does not account for taxes or market conditions that could affect the stock price differently, but in an efficient market with no taxes, this would be the expected change in the stock price following the dividend distribution.