Davis Engineering Declared a Dividend to Shareholders of Record on Monday

question 58

Multiple Choice

Davis Engineering declared a dividend to shareholders of record on Monday, February 8, that is payable on Friday, February 26.Carla knows that her dividend check normally arrives three business days after the check is written.On which one of the following days should she expect to receive her dividend check? Assume a 365-day year.

• A)Wednesday, February 10
• B)Thursday, February 11
• C)Monday, March 1
• D)Tuesday, March 2
• E)Wednesday, March 3

---

Definitions:

Economic Profit

The profit a firm makes after subtracting both its explicit (out-of-pocket) and implicit (opportunity) costs.

Total Costs

The aggregate amount of all expenses associated with the production of a good or service, including both fixed and variable costs.

Implicit Costs

These are the costs of using resources owned by the company for production that aren't directly paid for or incurred as a clear expense.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.