A Stock Goes Ex-Dividend

question 83

Multiple Choice

A stock goes ex-dividend:

• A) two business days prior to the record date.
• B) two business days after the declaration date.
• C) three business days prior to the record date.
• D)three business days prior to the payment date.

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Definitions:

Plowback Ratio

A metric indicating the proportion of earnings retained by a company for reinvestment in its operations, rather than distributed to shareholders as dividends.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating how quickly the dividend payments have grown over a specific period.

Expected ROE

The anticipated return on equity, calculated based on expected future earnings divided by shareholders' equity.

Expected ROE

The projected return on equity, which measures a company's efficiency at generating profits from every unit of shareholder's equity.