A company’s dividend policy refers to the manner in which a firm distributes its earnings to shareholders. Firms can pay out cash in one of two ways: a dividend or a share repurchase. Before 1983, stock repurchases were fairly rare, but today they are common. When a firm decides to pay a dividend, it usually follows the following process. Several critical dates play a role in the dividend payment procedure. In the following table, identify the critical dividend dates. Check boxes that apply for each: Declaration Date Ex-Dividend Date Payment Date Holder-of-Record Date Dividend checks are sent to shareholders. Shares purchased on or after this date do not entitle investors to the stock’s dividend. All shareholders as of this date will be mailed a dividend check. The firm announces its intention to pay a dividend.
A company’s dividend policy refers to the manner in which a firm distributes its earnings to shareholders. Firms can pay out cash in one of two ways: a dividend or a share repurchase. Before 1983, stock repurchases were fairly rare, but today they are common. When a firm decides to pay a dividend, it usually follows the following process. Several critical dates play a role in the dividend payment procedure. In the following table, identify the critical dividend dates. Check boxes that apply for each: Declaration Date Ex-Dividend Date Payment Date Holder-of-Record Date Dividend checks are sent to shareholders. Shares purchased on or after this date do not entitle investors to the stock’s dividend. All shareholders as of this date will be mailed a dividend check. The firm announces its intention to pay a dividend.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter12: Valuation: Cash-flow Based Approaches
Section: Chapter Questions
Problem 5QE
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A company’s dividend policy refers to the manner in which a firm distributes its earnings to shareholders. Firms can pay out cash in one of two ways: a dividend or a share repurchase. Before 1983, stock repurchases were fairly rare, but today they are common. When a firm decides to pay a dividend, it usually follows the following process.
Several critical dates play a role in the dividend payment procedure. In the following table, identify the critical dividend dates. Check boxes that apply for each:
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Declaration Date
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Ex-Dividend Date
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Payment Date
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Holder-of-Record Date
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| Dividend checks are sent to shareholders. |
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| Shares purchased on or after this date do not entitle investors to the stock’s dividend. |
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| All shareholders as of this date will be mailed a dividend check. |
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| The firm announces its intention to pay a dividend. |
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