To Receive the Current Quarterly Dividend, When Must an Investor

question 32

Multiple Choice

To receive the current quarterly dividend, when must an investor buy shares in a company?

• A) Before the record date.
• B) Before the ex-dividend date.
• C) Before the cum-dividend date.
• D) Before the transaction date.
• E) Before the settlement date.

---

Definitions:

Expected Cash Flows

The projected amount of cash that is anticipated to be generated or expended over a certain period in the future.

Present Value

The contemporary valuation of future monetary sums or cash flow chains, determined by a designated rate of return.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Time Value

The principle that having money now is more valuable than the same sum in the future because of its ability to earn more over time.