Suppose instead, Evergreen follows a stable dividend policy and declares a $2.00 per share dividend. The holder of record date is January 10, 2022, and the payment date is January 31, 2022. Emily sold 500 shares of Evergreen on January 7, 2022, to Anna? 

Which of the two investors will receive the dividends? 

How much dividend income with they receive?

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Evergreen Inc's most recent Statement of Financial Position is given below. Evergreen Inc. Statement of Financial Position As at Dec 31, 2021 Assets $ 425,000 Cash Accounts Receivable $ 400,000 Inventories $ 500,000 Total Current Assets $ 1,325,000 Net Fixed Assets $ 18,000,000 Total Assets Additional Information: ● $ 19,325,000 ● Liabilities Accounts Payable Other Current Liabilities Total Current Liabilities LT Debt Common Stock (85,000 shares o/s) Retained Earnings Total Liabilities & Owners Equity Current market price per common share = $ 195 Before tax cost of borrowing (secured loan) = 5% Weighted Average Cost of Capital =12% Net Income for 2021 = $925,000 Target D/E ratio based on market values = 0.25 Corporate tax rate = 35% $ esses $ $ $ $ $ $ 300,000 425,000 725,000 2,500,000 4,500,000 11,600,000 19,325,000 Evergreen Inc's most recent Statement of Financial Position is given below. Evergreen Inc. Statement of Financial Position As at Dec 31, 2021 Assets $ 425,000 Cash Accounts Receivable $ 400,000 Inventories $ 500,000 Total Current Assets $ 1,325,000 Net Fixed Assets $ 18,000,000 Total Assets Additional Information: ● $ 19,325,000 ● Liabilities Accounts Payable Other Current Liabilities Total Current Liabilities LT Debt Common Stock (85,000 shares o/s) Retained Earnings Total Liabilities & Owners Equity Current market price per common share = $ 195 Before tax cost of borrowing (secured loan) = 5% Weighted Average Cost of Capital =12% Net Income for 2021 = $925,000 Target D/E ratio based on market values = 0.25 Corporate tax rate = 35% $ esses $ $ $ $ $ $ 300,000 425,000 725,000 2,500,000 4,500,000 11,600,000 19,325,000

Answer rating: 100% (QA)

The record date is January 10 2022 The payment dat... View the full answer