On January 10,2013,ZOE Corporation declared a cash dividend when the related shares were selling for $10 per share.ZOE prepared the list of shareholders on February 10,2013 at which time the shares were still selling for $10 per share.However,on February 11,2013 the shares were selling for $8 per share.The dividend was paid on March 1,2013 when the shares were selling for $9 per share.The ex-dividend date must have been:

Question

Quizplus · Accepted Answer

The ex-dividend date is the first day that buyers of a stock are not entitled to receive the next dividend payment. In order to be entitled to receive the dividend, investors must own the stock prior to the ex-dividend date.

In this scenario, the dividend was declared on January 10, 2013, and the list of shareholders was prepared on February 10, 2013, which was before the ex-dividend date. However, on February 11, 2013, the shares went ex-dividend, meaning that anyone who purchased the stock on or after that date would not receive the dividend.

Therefore, the correct answer is C) February 11/13.

On January 10,2013,ZOE Corporation Declared a Cash Dividend When the Related