Asked by Kalin Williams on Apr 24, 2024
On January 6, you purchased 700 shares of Kulpepper Distributors stock. On July 12, you sold 400 shares of this stock for $34 per share. You sold an additional 200 shares on July 14 at a price of $33.40 per share. The company declared a $.75 per share dividend on June 16 to holders of record as of Tuesday, July 18. This dividend is payable on August 10. How much dividend income will you receive on August 10 as a result of your ownership Kulpepper stock?
A) $150
B) $225
C) $375
D) $450
E) $525
Dividend Income
Income received from owning shares of a company that pays dividends.
Dividend Per Share
The total dividends declared by a corporation divided by the number of outstanding shares, indicating how much each share receives in dividends.
- Ascertain the total dividend earnings by considering the quantity of shares held and adhering to the dividend guidelines.
- Recognize the impact of the announcement of dividend dates, establishment of record dates, and scheduling of payment dates on dividend qualification.
Learning Objectives
- Ascertain the total dividend earnings by considering the quantity of shares held and adhering to the dividend guidelines.
- Recognize the impact of the announcement of dividend dates, establishment of record dates, and scheduling of payment dates on dividend qualification.