On May 18^th,you purchased 1,000 shares of LKM stock.On June 5^th,you sold 200 shares of this stock for $21 a share.You sold an additional 400 shares on July 8^th at a price of $22.50 a share.The company declared a $.40 per share dividend on June 25^th to holders of record as of Thursday,July 10^th.This dividend is payable on July 31^st.How much dividend income will you receive on July 31^st as a result of your ownership of LKM stock?

Question

Quizplus · Accepted Answer

Since July 8^th is the ex-dividend date,you will receive the dividend on the shares you sold on that date.Dividend received = $.40 × (1,000 - 200)= $320

On May 18th,you Purchased 1,000 Shares of LKM Stock

On May 18^th,you Purchased 1,000 Shares of LKM Stock