CDE Corporation Declared a $2 Per Share Dividend on October

question 73

Multiple Choice

CDE Corporation declared a $2 per share dividend on October 1.The date of record is October 20^th,the ex-dividend date is October 18^th,and the payment date is October 31^st.Joe owns a share of stock on October 1.Joe sells his share to Mary on October 19^th,and Mary sells the share to Tom on October 29t^h. Who will receive the dividend?

• A) Joe
• B) Mary
• C) Tom
• D) No one, since the share was not owned consistently by one person over the period.

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Definitions:

Quantity of Output

Refers to the total amount of goods or services produced by a company over a specific period.

Costs

The total expenses incurred by a business in producing goods or providing services.

Variable Cost

relates to expenses that vary directly with the level of production or business activity, such as raw materials and labor costs.

Contribution Margin

The selling price per unit minus the variable cost per unit, used to cover fixed costs and to generate profit.