On February 15, 2021, Harriett sold 500 shares of QRS Corporation short on the NYSE. Four days later, QRS declared a cash dividend of $.10 per share payable 55 days later to shareholders of record on March 1, 2021. Who will receive the cash dividend on this stock?
On February 15, 2021, Harriett sold 500 shares of QRS Corporation short on the NYSE. Four days later, QRS declared a cash dividend of $.10 per share payable 55 days later to shareholders of record on March 1, 2021. Who will receive the cash dividend on this stock?
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 65P
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Question
Transcribed Image Text:On February 15, 2021, Harriett sold 500 shares of
QRS Corporation short on the NYSE. Four days
later, QRS declared a cash dividend of $.10 per
share payable 55 days later to shareholders of
record on March 1, 2021. Who will receive the cash
dividend on this stock?
Group of answer choices
Harriett must pay the cash dividend to the investor
who acquired the shares from her that she sold
short
Harriett's broker will be entitled to the cash
dividend as part of its profit in selling the stock
short
Harriett must pay the cash dividend to the investor
who loaned the shares to her that she sold short
QRS gets to keep the cash dividend until the
shares are repurchased by Harriett
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