The Date on Which a Firm Pays Out Dividends Is

question 22

Multiple Choice

The date on which a firm pays out dividends is called the ________ date.

• A)declaration
• B)record
• C)ex-dividend
• D)distribution
• E)dividend

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Definitions:

Compounded Monthly

A calculation method where interest is added to the principal balance on a monthly basis, resulting in interest on interest.

Equal Payments

A series of payments that are the same in amount, typically made at regular intervals over a specified period of time.

Focal Date

The date selected for the calculation of equivalent values.

Compounded Annually

Definition: Refers to the calculation and addition of interest to the principal sum of a loan or deposit once every year.