On July 14, you purchased 1,500 shares of Myron stock. On August 1, you sold 500 shares of this stock for $16 a share. You sold an additional 300 shares on August 18 at a price of $18 a share. The
Company declared a $.75 per share dividend on August 3 to holders of record as of Wednesday,
August 15. This dividend is payable on August 31. How much dividend income will you receive on
August 31 as a result of your ownership of Myron stock?

Question

Quizplus · Accepted Answer

To calculate the dividend income, we need to find out how many shares you owned as of the record date of August 15.

As of August 15, you still owned 1,200 shares (1,500-500-300).

So, your dividend income will be:

1,200 shares x $.75 per share = $900

Therefore, the correct answer is choice (C).

On July 14, You Purchased 1,500 Shares of Myron Stock