The Rent It Company Declared a Dividend of

question 6

Multiple Choice

The Rent It Company declared a dividend of $.55 a share on October 20^th to holders of record on Monday,November 1^st.The dividend is payable on December 1^st.You purchased 100 shares of Rent It Company stock on Wednesday,October 27^th.How much dividend income will you receive on December 1^st from the Rent It Company?

• A)$0
• B)$1.50
• C)$5.50
• D)$55.00
• E)$110.00

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Definitions:

Journal Entry

A record in the books of accounts that represents a transaction and its effect on various accounts.

Interest Expense

The financial charge for an entity using borrowed capital over a time frame.

Notes Payable

Short-term or long-term liabilities representing amounts owed on written promises to pay a specific sum of money at a future date.

Market Rate

The current price or cost of a good, service, or financial asset in the marketplace, determined by supply and demand dynamics.