Question

Chelsie Enterprises declared a dividend to shareholders of record on Monday, February 8, that is payable on Friday, February 26. Carla knows that her dividend check normally arrives three business days after the check is written. On which one of the following days should she expect to receive her dividend check?
A. Wednesday, February 10

B. Thursday, February 11

C. Monday, March 1

D. Tuesday, March 2

E. Wednesday, March 3

Answer 1

Answer:

E

Explanation:

Dividends check are mailed on payment date which is February 26 in this scenario.

It normally take the check three business day after the check is written to arrive to the beneficiary.

Please note that the check was issued on a Friday , which means that 27th and 28th February are non- working days. Therefore , the check will arrive on March 3 which is Wednesday.

Answer 2

Answer:

D. Tuesday, March 2

Explanation:

Well the dividend was declared on February 8 but that doesn't matter here.

What matters here is the payable date i.e Friday, February 26.

Now, 3 business days mean no Saturday and Sunday involved in it.

Hence, third business working day will be on Tuesday, March 2.

Hope this helps.

Thank You.