When a company pays a dividend, it isn\'t as simple as getting a paycheck from o

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 which critical dividend date relates to each of the statements. Flagon Transcontinental Corp.'s board of directors announced that it will pay a $1 million dividend in three months on this date. Declaration Date Holder-of-Record date Ex-Dividend Date Payment Date Flagon Transcontinental Corp. actually sent the dividend checks to stockholders on this date. Declaration Date Holder-of-Record date Ex-Dividend Date Payment Date Flagon Flagon Transcontinental Corp.'s board of directors declared that whoever is listed as the owner of the stock on this date will receive the dividend for this year. Declaration Date Holder-of-Record date Ex-Dividend Date Payment Date Flagon Flagon Transcontinental Corp.'s board of directors set this date as the date on which the right to the current dividend no longer accompanies the stock. Declaration Date Holder-of-Record date Ex-Dividend Date Payment Date Flagon

Explanation / Answer

Declaration Date: Date on which dividend is announced

Holder-of-date: Owner of stock who receives the principal and interest payments. All people holding the stock positions

Ex dividend data: A day after Holder-of-date. Dividend payment is already made and people who have stock on this date are not related to any dividend payments

Payment Date: Actual cash is transferred on this date

Declaration Holder-of-record Ex-dividend Payment 1 X 2 X 3 X 4 X

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