Which Date Is Used to Determine Which Shareholders Will Receive

question 73

Multiple Choice

Which date is used to determine which shareholders will receive the declared dividend?

• A) date of record
• B) date of declaration
• C) ex-dividend date
• D) date of payment

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Definitions:

Payback Period

The length of time required to recover the cost of an investment.

Direct Materials

Materials that can be directly linked to the production of a product and represent a substantial portion of the cost.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Annual Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues over a year.