On May 23, 2008, the board of directors of Hasbro, Inc. announced that it would pay a dividend of $0.20 a share on August 15, 2008, to shareholders of record as of August 1, 2008. In
Order to receive this dividend, an investor would have to purchase the stock on or before

Question

Quizplus · Accepted Answer

The cum-dividend date is the date on which a stock begins trading without its dividend. To receive the dividend, an investor must purchase the stock on or before this date. In this case, the cum-dividend date is not given, but we know that the record date is August 1, 2008, which means an investor must purchase the stock on or before the day before the record date, which is the cum-dividend date. Therefore, the best choice is B, the cum-dividend date. The cum-dividend date is the first date on which a share of stock trades without the dividend. In this case, the shareholder of record as of August 1, 2008, would be entitled to the dividend payment. Therefore, an investor would have to purchase the stock on or before the cum-dividend date, which is August 1, 2008, to receive the dividend.

On May 23, 2008, the Board of Directors of Hasbro