Axis Inc. declared a dividend on July 27, 2004 to be payable on September 10, 2004. The
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Question:
Axis Inc. declared a dividend on July 27, 2004 to be payable on September 10, 2004. The list of shareholders who would be entitled to this dividend would be prepared on August 10, 2004
a) a) Identify the key dates involved with dividend payment
b) If Tim bought some shares on August 7, 2004, would he have received the dividend declared for this period? If not, who would receive it?
c) You buy a share of stock before the ex?dividend date for US$15. The dividend declared is US$1.50 per share. Ignoring the effect of taxes, does the value of your investment increase after the ex?dividend date? Does it decrease? Why? Why not?
Related Book For
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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