The Rent It Company declared a dividend of $.60 a share on October 20th to holders of record on Monday,November 1st.The dividend is payable on December 1st.You purchased 100 shares of this stock on Wednesday,October 27th.How much dividend income will you receive on December 1st as a result of this declaration?

Question

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$60.00. Since you purchased the shares before the record date (November 1st), you are entitled to the dividend. With 100 shares at $.60 per share, the total dividend income is 100 * $.60 = $60.00.

The Rent It Company Declared a Dividend of