Plyler Cabinets declared a dividend of $1.32 per share on May 30 to holders of record on Monday, June 12. The dividend is payable on June 16. Sara purchased 300 shares of this stock on Thursday, June 8. How much dividend income will she receive on June 12 from these shares?
A) $0
B) $396
C) $167
D) $198
E) $132

Question

Quizplus · Accepted Answer

Sara will not receive any dividend income because she purchased the shares after the record date of June 12. To be eligible for the dividend, she needed to own the shares before the record date.

Plyler Cabinets Declared a Dividend of $1