At a firm's quarterly dividend meeting held April 9,the directors declared a $0.50 per share cash dividend for the holders of record on Monday,May 19.The firm's stock will sell ex dividend on about ________.

Question

Quizplus · Accepted Answer

The ex-dividend date is usually set two business days before the record date, which in this case is May 19. Therefore, the stock will sell ex-dividend on May 17 (Saturday May 17 will be excluded, so the last trading day on which investors can buy the stock and still be entitled to receive the dividend is May 16). Option D is the only choice that gives that date.

At a Firm's Quarterly Dividend Meeting Held April 9,the Directors