Alicia Purchased 100 Shares of GT Stock on Wednesday,July 7^th

question 25

Multiple Choice

Alicia purchased 100 shares of GT stock on Wednesday,July 7^th.Nick purchased 100 shares of GT stock on Thursday,July 8^th.GT declared a dividend on June 20^th to shareholders of record on July 12^th and payable on August 1^st.Which one of the following statements concerning the dividend paid on August 1^st is correct given this information?

• A)Neither Alicia nor Nick are entitled to the dividend.
• B)Nick is entitled to the dividend but Alicia is not.
• C)Alicia is entitled to the dividend but Nick is not.
• D)Both Alicia and Nick are entitled to the dividend.
• E)Both Alicia and Nick are entitled to a pro rata share of the dividend.

---

Definitions:

Total Costs

The full price of manufacturing, which includes both constant and fluctuating expenses.

Labor Cost

The total expenditure incurred by a company to pay its employees, including wages, benefits, and taxes.

Total Cost Ratio

Represents the sum of all costs (fixed and variable) associated with production, expressed as a ratio over a specific period.

Elasticity

An economic measure of the responsiveness of the quantity demanded or supplied of a good or service to changes in its price or consumer income.