Question

On Tuesday, January 7, the board of Pavlov’s Dog Training (PDT), a U.S. company, declared a...

On Tuesday, January 7, the board of Pavlov’s Dog Training (PDT), a U.S. company, declared a dividend of $0.75 per share payable on Tuesday, January 28 to shareholders of record as of Tuesday, January 14. If you bought 200 shares of PDT stock on Monday, January 13 for $7.50 per share, how much would you receive in cash dividends on January 28, assuming the ex-dividend date is two business days before the date or record?

a. $0.00

b. $15.00

c. $75.00

d. $150.00

e. None of the above.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:

a. $0.00

Explanation:

Given:

For dividend payments:

Record date is Tuesday, January 14.

Ex-dividend date is two business days before the date or record which implies ex-dividend date is 10th January, Friday.

If you bought 200 shares of PDT stock on Monday, January 13 which is one business day after ex-dividend date, you would not get dividends.

As such cash dividends you receive on January 28 = $0

Option a is correct and other options b, c, d and e are incorrect.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which one of the following statements is true? a. XYZ declared a dividend of $.80 a...
Which one of the following statements is true? a. XYZ declared a dividend of $.80 a share. The ex-dividend date is tomorrow. All else constant, you would expect the opening price tomorrow morning to be higher by an amount approximately equal to the after tax value of the dividend. b. Winsome and Losesome declared a dividend to shareholders of record on Monday, February 10, which is payable on Wednesday, February 25. Julie knows that once her dividend check is mailed...
Keenan Corp declared a dividend of $1.10 per share on Friday February 9, payable on Friday...
Keenan Corp declared a dividend of $1.10 per share on Friday February 9, payable on Friday March 2 to shareholders of record as of Tuesday February 27. Katie bought 1,000 shares of Keenan on Friday February 23 and Jake sold 500 shares on Thursday February 22. Will Katie receive a dividend? If so, how much will she receive? Briefly explain. Will Jake receive a dividend? If so, how much will he receive? Briefly explain.
Keenan Corp declared a dividend of $1.10 per share on Friday February 9, payable on Friday...
Keenan Corp declared a dividend of $1.10 per share on Friday February 9, payable on Friday March 2 to shareholders of record as of Tuesday February 27. Katie bought 1,000 shares of Keenan on Friday February 23 and Jake sold 500 shares on Thursday February 22. a) Will Katie receive a dividend? If so, how much will she receive? Briefly explain. b) Will Jake receive a dividend? If so, how much will he receive? Briefly explain.
At a company’s December 15 meeting, the board of directors declared a total of $80,000 dividends...
At a company’s December 15 meeting, the board of directors declared a total of $80,000 dividends payable to the common and preferred shareholders. The dividend is payable on January 15 to shareholders of record on December 31. No journal entry has been made to record this dividend. It is the company’s practice to keep dividends payable to common and preferred shareholders in separate accounts. There are 17,500 common shares with a balance of $349,197 at December 31, 20x5. There are...
Problem 3 (Small and Large Stock Dividends) On November 7, Lauren Enterprise Company declared a share...
Problem 3 (Small and Large Stock Dividends) On November 7, Lauren Enterprise Company declared a share capital dividend distributable to shareholders of record of November 15, distributable on December 5. The Lauren Enterprise Company has 250,000 ordinary shares with 20 par value per share at the date of declaration. The fair market value of Lauren Enterprise as follows: November 7 – 25 per share; November 15 – 22 per share; December 5 – 24 per share.                                                          Requirement: Prepare all...
The firm is an all-equity firm with assets worth $350 million and 100 million shares outstanding....
The firm is an all-equity firm with assets worth $350 million and 100 million shares outstanding. It plans to borrow $100 million and use these funds to repurchase shares. The firm’s marginal corporate tax is 21%, and it plans to keep its outstanding debt equal to $100 million permanently. If the firm manages to repurchase shares at $4 per share, what is the per share value of equity for the leveraged firm? A) $2.71 per share B) $3.5 per share...
1. Burlon Printing Company has net income of $175,000 for the year each 6/30/2009, the board...
1. Burlon Printing Company has net income of $175,000 for the year each 6/30/2009, the board of directors met and declared a dividend of $0.35 per share for each of the 150,000 outstanding shares of common stock.  The board voted to make the actual distribution on September 1 to all shareholders of record as of August 1.  What is the (a) declaration, (b) date of record, and (c) the date of payment? If Burlon Printing Company were to prepare a balance sheet...
Shareholders’ Equity Preferred shares cash dividends have been declared and paid. Common share cash dividends have...
Shareholders’ Equity Preferred shares cash dividends have been declared and paid. Common share cash dividends have been declared, but not paid. HEMI’s board of directors declared a 10% common stock dividend on November 1, 2019. Common shares for the stock dividends were issued to the existing common shareholders on December 30, 2019. However, the transaction has not been recorded in HEMI’s accounting records. HEMI is authorized to issue 50,000,000 common shares. HEMI issued 12,000,000 common shares on January 2, 2019...
1. Nova Scotia Corp has just completed its year-end. The company reported net income of $5,500,000....
1. Nova Scotia Corp has just completed its year-end. The company reported net income of $5,500,000. Senior management has decided to pay dividends of $1,600,000. What is the firm's retention ratio? 2.At the board of directors meeting of Canada Co. on June 5, it is reported that the EPS of the firm is expected to be $2.25 per share. The board of directors declares a dividend of $1.00 per share on June 5 (Wednesday), with a holder-of-record date of July...
#1.Stargazer Company was incorporated on January 1, 2015 but was unable to begin manufacturing activities until...
#1.Stargazer Company was incorporated on January 1, 2015 but was unable to begin manufacturing activities until July 1, 2015, because new factory facilities were not completed until that date. The Land and Building account reported the following items during 2015: January 31                                                       Land and buildings                          $160,000 February 28                                                     Cost of removal of building                 9,800 May 1                                                              Partial payment of new construction     60,000 May 1                                                              Legal fees paid                                     3,770 June 1                                                              Second payment on new construction 40,000 June...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT