Foundations of Financial Management
Foundations of Financial Management
16th Edition
ISBN: 9781259277160
Author: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Publisher: McGraw-Hill Education
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Chapter 18, Problem 7DQ
Summary Introduction

To explain: Whether the upcoming quarterly dividend should be paid if the stock is bought on ex-dividend date.

Introduction:

Ex-dividend Date:

One of the four stages of dividend payment by a company is the ex-dividend date, which helps in determining whether the shareholder will receive the upcoming dividend or not.

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What was X-Co stock’s annual total return (ATR) for 2022 if you bought it for $20 on 1/1; received a $.40 dividend on 3/1 when the stock closed at $18; received a $.40 dividend on 9/1 when the stock closed at $20; and on 12/31 sold the stock for $22? (Express your answer as a percent carried to 1 decimal place.)
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Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License