You purchased 200 shares of ABC stock on July 15th. On July 20th, you purchased another 100 shares and then on July 21st you purchased your ﬁnal 200 shares of ABC stock. The company
Declared a dividend of $1.10 a share on July 5th to holders of record on Friday, July 23rd. The
Dividend is payable on July 31st. How much dividend income will you receive on July 31st from ABC?

Question

Quizplus · Accepted Answer

To calculate the dividend income, we need to find the total number of shares held by the investor on the record date, which is July 23rd.

On July 15th, the investor purchased 200 shares.

On July 20th, the investor purchased an additional 100 shares, bringing the total to 300 shares.

On July 21st, the investor purchased another 200 shares, bringing the total to 500 shares.

Therefore, the investor will receive a dividend income on 500 shares.

Dividend income = Number of shares x Dividend per share
= 500 x $1.10
= $550

Thus, the correct answer is C) $330, as this is the dividend income that the investor will receive on July 31st from ABC.

You Purchased 200 Shares of ABC Stock on July 15th