Drew Financial Associates currently pays a quarterly dividend of 50 cents per share. This quarters dividend will
Question:
a. What is the ex-dividend date for this quarter?
b. Drew’s stock traded for $22 per share the day prior to the ex-dividend date. What would you expect the stock price to open at on the ex-dividend date? Give some reasons why this might not occur.
c. What is the effect of the dividend payment on Drew’s cash, retained earnings, and total assets?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
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