A Dividend Is Declared on January 1, Has a With-Dividend

question 50

Multiple Choice

A dividend is declared on January 1, has a with-dividend date of January 19, and a record date of January 26.Which of the following shareholders will not receive the dividend?

• A)A shareholder who purchases on December 31.
• B)A shareholder who purchases on January 10.
• C)A shareholder who purchases on January 19.
• D)A shareholder who purchases on January 24.

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Definitions:

Legal Duty

An obligation arising from law that requires an individual or entity to conform to a standard of conduct.

Prudent Person

An individual who exercises caution and good judgment when making decisions, often used as a standard for legal and financial decisions.

Misstatement

An error or inaccuracy in financial information or statements, which can be intentional (fraud) or unintentional.

Rebuttable Presumption

A legal presumption that can be overturned or challenged with evidence to the contrary, typically affecting the burden of proof in legal proceedings.