At a firm's quarterly dividend meeting held April 9, the directors declared a $0.50 per share cash dividend for the holders of record on Monday, May 1. When will the firm's stock sell ex-dividends on?
The ex-dividend date is the date before which a person has to be the owner of the stock in order to receive the dividend. If the stock is bought on or after the ex-dividend date, the dividend is not receivable.
Answer and Explanation:
The holder of record date is the working day before the ex-dividend date. If the holder of the record date is Monday, May 1, then the ex-dividend date shall be Tuesday, April 28th. This is assuming Saturday and Sunday are off days. Hence the stock would sell ex-dividend on Tuesday, April 28th.
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from Finance 101: Principles of FinanceChapter 16 / Lesson 1