Question

lisa purchased 100 shares of ABC stock on May 15th. On May 21st, she purchased another 100 shares and then on May 22nd she purchased 200 additional shares. The company declared a dividend of $1.32 a share on May 5th to holders of record on Friday, May 23rd. The dividend is payable on May 31st. How much dividend income will she receive on May 31st from ABC?

Answer 1

Dividend received = $132

Step-by-step explanation:

given data

purchased May 15th = 100 shares

purchased May 21st = 100 shares

purchased May 22nd = 200 shares

dividend = $1.32

to find out

How much dividend income will she receive on May 31st

solution

we know that lisa purchased share on May 21st that is is ex dividend date

sothat here lisa purchased shares on May 15th will be only eligible for the dividend

so Dividend received will be as

Dividend received = purchased May 15th share × dividend ........................1

Dividend received = 100 × $1.32

Dividend received = $132