At a firm's quarterly dividend meeting held April 9, the directors declared a $.50 per share cashdividend for the holders of record on Monday, May 1. The firm's stock will sell ex-dividends on

Question

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To be eligible to receive the dividend, an investor must be a holder of record on May 1. Typically, it takes two business days for a transaction to settle and for the buyer to officially become a holder of record. Therefore, anyone who purchases shares on or after the ex-dividend date will not be eligible to receive the dividend. The ex-dividend date is typically set two business days before the record date. In this case, May 1 is a Monday, so the ex-dividend date would be two business days before that, which is Thursday, April 27. Therefore, the correct answer is B: April 27.

At a Firm's Quarterly Dividend Meeting Held April 9, the Directors