Alberta Owns 100 Shares of Stock of ABC Company, and Bobby

question 13

Multiple Choice

Alberta owns 100 shares of stock of ABC Company, and Bobby owns 200 shares of the same stock. If ABC Company pays a $5 dividend to all stockholders with a record date of Friday, June 15, then

• A) Alberta will receive the same amount as Bobby if they owned the stock two business days before the record date.
• B) Both will receive the dividend as long as they sell their stock three days before the record date.
• C) Alberta will receive half as much as Bobby if they owned the stock two business days before the record date.
• D) Both will receive the dividend if they bought the stock on the record date.
• E) Alberta and Bobby will receive the same amount if they bought the shares at least one month before the record date.

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