Beryl Corporation has 15 million common shares outstanding trading on October 1 at a cum dividend price of $22.15 a share. Its EPS at that time, the end of the third quarter, is $1.80 per share. If the ex dividend price drops to $21.95 on Oct. 2, what dividend was declared?

Question

Quizplus · Accepted Answer

The drop in price from $22.15 to $21.95 indicates a dividend of $0.20 per share was declared. With 15 million shares, the total dividend is 15 million * $0.20 = $3 million.

Beryl Corporation Has 15 Million Common Shares Outstanding Trading on October