Question

On July 9, you purchased 600 shares of Blue Water stock for $32 a share. On August 4, you sold 100 shares of this stock for $33 a share. You sold an additional 100 shares on August 14 at a price of $34.50 a share. The company declared a dividend of $.76 per share on August 3 to holders of record as of Monday, August 17. This dividend is payable on September 15. How much dividend income will you receive on September 15? a. $304 b. $418 c. $380 d. $360 e. $456

Answer 1

Answer:Dividend received = $380

Explanation:

Given:

Dividend declared= $0.76

Shares purchased= 600

Shares sold= 100

The  dividend income we will receive on September 15 can be computed using the following formula:

Dividend received =  Dividend declared×( Shares purchased- Shares sold)

= 0.76×(600-100)

= $380.