Question

On may 20, 2010, tony blackman bought 100 shares of stock from xyz corporation. the quarterly dividend is $1.25 per share and the record date is may 25. how much will tony receive for this quarterly dividend?

Answer 1

Tony is able to purchase the shares even before the dividend are distributed to the shareholders. Hence, he will be part of the payment to be made by the XYZ corporation.

To determine the amount that Tony will receive as dividend for taking part in the company's generation of capital, we multiply the number of shares he has by the amount that he is to get per share. That is,
      dividend = (number of shares)(amount per share)

Substituting,
    dividend = (100 shares)($1.25/share)
    dividend = $125

ANSWER: $125