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Daniel [21]
3 years ago
12

A corporation declares a cash dividend on Friday, December 5th, payable to holders of record on Friday, December 19th. The local

newspaper publishes the announcement on Monday, December 8th, while Standard and Poor's reports the dividend on Friday, December 12th. The ex date for regular way trades will be set at:
A Friday, December 5th
B Wednesday, December 17th
C Thursday, December 18th
D Friday, December 19th
Business
1 answer:
lisov135 [29]3 years ago
4 0

Answer: C. Thursday, December 18th

Explanation:

The ex-date for dividends is the business day before the dividends are to be distributed. This is regardless of when the news of the dividends are announced by various entities.

The dividends are to be distributed on Friday, December 19th which means that the ex-date has to be the day before which is Thursday the 18th. As this is a weekday, we can assume that it is a business day as well.

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