When a company pays a dividend, it isn\'t as simple as getting a paycheck from o
ID: 2653862 • Letter: W
Question
When a company pays a dividend, it isn't as simple as getting a paycheck from one's employer. There are several critical dates in the dividend payment process. Identify each of the critical dividend dates in the table. Date Description The date on which a firm's director issues a statement announcing a dividend. The firm actually sends the dividend checks on this date. If the company lists the stockholder as an owner on this date, then the stockholder receives the dividend. The date on which the right to the current dividend no longer accompanies a stock.Explanation / Answer
Date
Description
Declaration Date
The date on which a firm’s director issues a statement announcing a dividend.
Payment date
The firm actually sends the dividend checks on the date.
Holder-of-record date
If the company lists the stockholder as an owner on the date, then the stockholder receives the dividend.
Ex-Dividend date
The date on which the right to the current dividend no longer accompanies a stock.
Explanation-
On Declaration date the board of director of the company announces the intention to pay the dividend to stockholders. On that day company record the liability on the financial books.
On the Payment date company pay the dividend to the stoickholders of the company.
On the record date company listed a stockholder as owner on the date..
The Ex dividend date is set for stock two business days prior to the record date. If the shareholder purchase a stock on Ex dividend date or after the date than the shareholder not received the next payment of dividend.
Date
Description
Declaration Date
The date on which a firm’s director issues a statement announcing a dividend.
Payment date
The firm actually sends the dividend checks on the date.
Holder-of-record date
If the company lists the stockholder as an owner on the date, then the stockholder receives the dividend.
Ex-Dividend date
The date on which the right to the current dividend no longer accompanies a stock.
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