Kathy Snow wishes to purchase shares of Countdownâ Computing, Inc. Theâ company's board of directors has declared a cash dividend of â$1.07
to be paid to holders of record onâ Wednesday, Sep. 21.
a. What day does this stock begin trading exâ dividend?
b. What is the last day that Kathy can purchase the stockâ (trade date) and still receive theâ dividend?
c.ââWhatâ change, ifâ any, would you expect in the price per share when the stock begins trading on theâ ex-dividend day?
d.ââIf Kathy held the stock for less than one quarter and then sold it forâ $53.84 perâ share, would she achieve a higher investment return byâ (1) buying the stock prior to theâ ex-dividend date atâ $ per share and collecting the $1.07 âdividend, orâ (2) buying it on theâ ex-dividend date at â$48.77 per share but not receiving theâ dividend?
Kathy Snow wishes to purchase shares of Countdownâ Computing, Inc. Theâ company's board of directors has declared a cash dividend of â$1.07
to be paid to holders of record onâ Wednesday, Sep. 21.
a. What day does this stock begin trading exâ dividend?
b. What is the last day that Kathy can purchase the stockâ (trade date) and still receive theâ dividend?
c.ââWhatâ change, ifâ any, would you expect in the price per share when the stock begins trading on theâ ex-dividend day?
d.ââIf Kathy held the stock for less than one quarter and then sold it forâ $53.84 perâ share, would she achieve a higher investment return byâ (1) buying the stock prior to theâ ex-dividend date atâ $ per share and collecting the $1.07 âdividend, orâ (2) buying it on theâ ex-dividend date at â$48.77 per share but not receiving theâ dividend?
