WXY Inc. declared a dividend on July 27, 2004 to be payable on September 10, 2004....

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Finance

WXY Inc. declared a dividend on July 27, 2004 to be payable onSeptember 10, 2004. The list of shareholders who would be entitledto this dividend would be prepared on August 10, 2004.
a) Identify the key dates involved with dividend payment (4points)
b) If Tom bought some shares on August 7, 2004, would he havereceived the dividend declared for this period? If not, who wouldreceive it? (3 points)
c) You buy a share of stock before the ex?dividend date forUS$15. The dividend declared is US$1.50 per share. Ignoring theeffect of taxes, does the value of your investment increase afterthe ex?dividend date? Does it decrease? Why? Why not? (3points)

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3.9 Ratings (514 Votes)

a The key dates are dividend payment are Dividend declaration day The day the dividend is declared which is July 27th 2004 Ex dividend date Ex dividend date is one business day before the record date which is 9th See Answer

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WXY Inc. declared a dividend on July 27, 2004 to be payable onSeptember 10, 2004. The list of shareholders who would be entitledto this dividend would be prepared on August 10, 2004.a) Identify the key dates involved with dividend payment (4points)b) If Tom bought some shares on August 7, 2004, would he havereceived the dividend declared for this period? If not, who wouldreceive it? (3 points)c) You buy a share of stock before the ex?dividend date forUS$15. The dividend declared is US$1.50 per share. Ignoring theeffect of taxes, does the value of your investment increase afterthe ex?dividend date? Does it decrease? Why? Why not? (3points)