On January 6, You Purchased 700 Shares of Kulpepper Distributors

question 164

Multiple Choice

On January 6, you purchased 700 shares of Kulpepper Distributors stock. On July 12, you sold 400 shares of this stock for $34 per share. You sold an additional 200 shares on July 14 at a price of
$33) 40 per share. The company declared a $.75 per share dividend on June 16 to holders of record
As of Tuesday, July 18. This dividend is payable on August 10. How much dividend income will you
Receive on August 10 as a result of your ownership Kulpepper stock?

• A) $150
• B) $225
• C) $375
• D) $450
• E) $525

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Definitions:

Record Date

The date set by a company on which you must be on the company's books as a shareholder to receive a declared dividend or participate in corporate actions.

First-Quarter Dividend

A dividend payment made by a company to its shareholders, typically announced after the first financial quarter's results.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Fixed Assets

Long-term tangible property owned by a business that is used in producing goods and services.