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?

Question

Quizplus · Accepted Answer

Since dividends are paid to holders of record as of a specific date, and you owned 700 shares before selling any, but sold 400 shares on July 12 and another 200 shares on July 14, you would still be the holder of record for 100 shares on July 18 (700 - 400 - 200 = 100). Therefore, you would receive a dividend for 100 shares at $.75 per share, which equals $75 (100 x $.75 = $75). The correct answer is not listed among the options provided, indicating a possible mistake in the question or the answer choices.

On January 6, You Purchased 700 Shares of Kulpepper Distributors