On May 18^th,you purchased 900 shares of LKM stock.On June 1^st,you sold 100 shares of this stock for $32 a share.You sold an additional 200 shares on July 6^th at a price of $34.50 a share.The company declared a per share dividend of $.33 on June 20^th to holders of record as of Friday,July 8^th.This dividend is payable on July 29^th.How much dividend income will you receive on July 29^th as a result of your ownership of LKM stock?

Question

Quizplus · Accepted Answer

Since July 6^th is the ex-dividend date,you will receive the dividend on the shares you sold on that date. Dividend received = $.33 × (900 - 100)= $264

On May 18th,you Purchased 900 Shares of LKM Stock

On May 18^th,you Purchased 900 Shares of LKM Stock