Chapter 14, Problem 14.2P

a)

Summary Introduction

To determine: The last date of K Company to purchase the shares and receives the dividend.

Introduction:

Dividend is the portion of earnings of the company distributed to the shareholders of the firm.

b)

Summary Introduction

To determine: The stock’s ex-dividend.

c)

Summary Introduction

To discuss: The changes in the price per share when the stock begins trading on the ex-dividend date.

d)

Summary Introduction

To determine: Whether Company K will receive the highest return.