Arden Corporation pays a quarterly dividend of $1.00 per share.Which of the following statements is most accurate concerning which shareholders will receive the dividend payment?

Question

Quizplus · Accepted Answer

The record date is set by the corporation and represents the date on which shareholders are officially recognized as owning shares and therefore eligible to receive the dividend. Shareholders who sell their shares after the record date but before the dividend is paid will still receive the dividend, while those who sell before the record date will not. The date the dividend is declared or paid does not affect which shareholders receive the dividend. Therefore, option B is the most accurate statement. Option A is incorrect because owning the stock on the date the dividend is declared does not guarantee receipt of the dividend. Option C is incorrect because owning the stock on the day the dividend is paid is irrelevant to whether a shareholder receives the dividend. Option D is incorrect because shareholders who own the stock on the record date are still entitled to receive the dividend even if they sell before the dividend checks are mailed.

Arden Corporation Pays a Quarterly Dividend of $1