Dividend payment Personal Finance Problem Kathy Snow wishes to purchase shares of Countdown Computing, Inc. The company's board of directors has declared a cash dividend of $0.18 to be paid to holders of record on Wednesday, Sep. 21. a. What is the last day that Kathy can purchase the stock (trade date) and still receive the dividend? b. What day does this stock begin trading ex dividend? c. What change, if any, would you expect in the price per share when the stock begins trading on the ex-dividend day? d. If Kathy held the stock for less than one quarter and then sold it for $50.12 per share, would she achieve a higher investment return by (1) buying the stock prior to the ex-dividend date at $ per share and collecting the $0.18 dividend, or (2) buying it on the ex-dividend date at $45.94 per share but not receiving the dividend? a. What is the last day that Kathy can purchase the stock (trade date) and still receive the dividend? (Select the best answer below.) O A. Wednesday, Sep. 21 O B. Friday, Sep. 16 O C. Monday, Sep. 19 OD. Sunday, Sep. 18 b. What day does this stock begin trading ex dividend? (Select the best answer below.) O A. Sunday, Sep. 18 B. Wednesday, Sep. 21 O C. Monday, Sep. 19 c. What change, if any, would you expect in the price per share when the stock begins trading on the ex-dividend day? (Select the best answer below.) O A. Stock price will not change. O B. Stock price will drop by the amount of the dividend ($0.18). O C. Stock price will rise by the amount of the dividend ($0.18). d. If Kathy held the stock for less than one quarter and then sold it for $50.12 per share, would she achieve a higher after-tax investment return by: (1) buying the stock prior to the ex-dividend date at $46.12 per share and collecting the $0.18 dividend, or (2) buying it on the ex-dividend date at $45.94 per share but not receiving the dividend? (Select the best answer below.) O A. She would be better off buying the stock at $45.94 and not taking the dividend. OB. She would be better off buying the stock at $46.12 and taking the dividend. Dividend payment Personal Finance Problem Kathy Snow wishes to purchase shares of Countdown Computing, Inc. The company's board of directors has declared a cash dividend of $0.18 to be paid to holders of record on Wednesday, Sep. 21. a. What is the last day that Kathy can purchase the stock (trade date) and still receive the dividend? b. What day does this stock begin trading ex dividend? c. What change, if any, would you expect in the price per share when the stock begins trading on the ex-dividend day? d. If Kathy held the stock for less than one quarter and then sold it for $50.12 per share, would she achieve a higher investment return by (1) buying the stock prior to the ex-dividend date at $ per share and collecting the $0.18 dividend, or (2) buying it on the ex-dividend date at $45.94 per share but not receiving the dividend? a. What is the last day that Kathy can purchase the stock (trade date) and still receive the dividend? (Select the best answer below.) O A. Wednesday, Sep. 21 O B. Friday, Sep. 16 O C. Monday, Sep. 19 OD. Sunday, Sep. 18 b. What day does this stock begin trading ex dividend? (Select the best answer below.) O A. Sunday, Sep. 18 B. Wednesday, Sep. 21 O C. Monday, Sep. 19 c. What change, if any, would you expect in the price per share when the stock begins trading on the ex-dividend day? (Select the best answer below.) O A. Stock price will not change. O B. Stock price will drop by the amount of the dividend ($0.18). O C. Stock price will rise by the amount of the dividend ($0.18). d. If Kathy held the stock for less than one quarter and then sold it for $50.12 per share, would she achieve a higher after-tax investment return by: (1) buying the stock prior to the ex-dividend date at $46.12 per share and collecting the $0.18 dividend, or (2) buying it on the ex-dividend date at $45.94 per share but not receiving the dividend? (Select the best answer below.) O A. She would be better off buying the stock at $45.94 and not taking the dividend. OB. She would be better off buying the stock at $46.12 and taking the dividend
