Which of the Following Statements Is Correct for Stock Purchased

question 78

Multiple Choice

Which of the following statements is correct for stock purchased on the last day to trade "cum dividend"?

• A)a dividend will be declared on the next trading day.
• B)a dividend will be paid on the next trading day.
• C)the stock price should decline on the next trading day.
• D)the stock price should have declined on the previous trading day.

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Definitions:

Planning Budget

A budget created at the beginning of a period, based on forecasted levels of activity, to guide business operations and financial planning.

Total Expenses

encompass all costs incurred by a business or individual within a specified period, including operational, financial, and non-operational expenses.

Planning Budget

An estimate of income and expenditure for a set period, often used to guide financial decision-making and control.

Total Cost

The complete cost of production, including both fixed and variable expenses.