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

Total shares purchased = 700
Sold 400 shares on July 12 at $34 per share, so the total earnings from the sale = 400*$34 = $13,600
Sold 200 shares on July 14 at $33.40 per share, so the total earnings from the sale = 200*$33.40 = $6,680
Total earnings from both sales= $13,600+$6,680=$20,280
The number of shares left= 700-400-200= 100 shares
Dividend per share= $0.75
Total dividend income= 100*$0.75 = $75
Therefore, the dividend income you will receive on August 10 is $75, which is the option B.

On January 6, You Purchased 700 Shares of Kulpepper Distributors