Jenny plans to sell 200 shares of ExxonMobil stock. Exxon-Mobil has just declared a $0.45 cash dividend
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Jenny plans to sell 200 shares of ExxonMobil stock. Exxon-Mobil has just declared a $0.45 cash dividend per share payable in 40 days to registered owners 20 days from now. If on the ex-date the price of ExxonMobil is $61.55 per share, show the total proceeds and the source of the proceeds to Jenny Anderson if she sells before the close on the ex-date or waits until the morning after the ex-date. Assume a world of no taxes.
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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If Jenny sells the shares before the exdate the price will include the 045 dividend Re...View the full answer
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