Chapter 17, Problem 1QP

a)

Summary Introduction

To determine: The correct date for each terms.

Explanation of Solution

Matching table:

b)

Summary Introduction

To determine: The date at which one of the stock price likely to fall by about the amount of the yield.

Explanation of Solution

The share cost is relied upon to fall on June 7, the ex-dividend date. The value falls on this day in light of the fact that, as the share goes ex-profit, the share proprietors are not, at this point qualified to gather the profit payable on July 2.

c)

Summary Introduction

To determine: The prospective dividend yield.

Explanation of Solution

Computation of dividend yield:

Hence, the prospective dividend yield is 1.11%.

d)

Summary Introduction

To determine: The percentage pay-out ratio.

Explanation of Solution

Computation of percentage pay-out ratio:

Hence, the percentage pay-out ratio is 15.79%.