Peterson Nurseries Declared a Dividend of

question 106

Multiple Choice

Peterson Nurseries declared a dividend of $.80 a share on June 1 to holders of record on Tuesday, June 18. The dividend is payable on July 1. You purchased 300 shares of this stock on Friday, June 14. How much dividend income will you receive on July 1 from Peterson Nurseries?

• A) $0
• B) $60
• C) $80
• D) $120
• E) $240

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Definitions:

Bargain Purchase

A situation where an entity acquires another entity's assets for less than their fair market value, often leading to a gain in the acquirer's financial statement.

Investment Account

An account held at a financial institution that is used for the purpose of investing in securities such as stocks, bonds, and mutual funds.

Liabilities

Liabilities are the economic debts or responsibilities that a business has to other entities, which are to be fulfilled over time by transferring economic resources.