Which Statement Best Represents the Relationship Between Date of Declaration

question 69

Multiple Choice

Which statement best represents the relationship between date of declaration, date of record and ex-dividend date, and date of payment, for a cash dividend.

• A)The date of payment results in the biggest decrease in the current ratio.
• B)The date of record establishes the amount to be received.
• C)The ex-dividend date establishes the decrease to cash.
• D)The date of declaration establishes the increase to liabilities.

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Definitions:

Utility Function

A mathematical representation used in economics to model satisfaction or preference that a consumer derives from the consumption of goods and services.

Risk Averse

A behavioral tendency to prefer avoiding losses over acquiring equivalent gains.

Present Value

The worth at present of an anticipated future cash amount or stream of payments, considering a particular rate of return.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, charged by lenders to borrowers for the use of their funds.