P142 DIVIDEND PAYMENT Kathy Snow wishes to purchase shares of Countdown Computing Inc. The companys board of directors has declared a cash dividend of $0.80 to be paid to holders of record on Wednesday, May 12.

1. What is the last day that Kathy can purchase the stock and still receive the dividend?
2. What day does this stock begin trading ex dividend?
3. What change, if any, would you expect in the price per share when the stock begins trading on the ex-dividend day?
4. Kathy believes that she will be able to sell the stock for $39 in a few months. Tomorrow is the ex-dividend date, and the stock price now is $35. Is she better off buying the stock now so she can capture the dividend, or should she wait until tomorrow, miss the dividend, and buy the stock at a slightly lower price?