The Rent It Company declared a dividend of $.60 a share on October 20^th to holders of record on Monday,November 1^st. The dividend is payable on December 1^st. You purchased 100 shares of Rent It Company stock on Wednesday,October 27^th. How much dividend income will you receive on December 1^st from the Rent It Company?

Question

Quizplus · Accepted Answer

You purchased the shares before the record date of November 1st, so you are eligible to receive the dividend. With 100 shares and a dividend of $0.60 per share, you will receive $60.00.

The Rent It Company Declared a Dividend of