Steve purchased 300 shares of Delta stock on May 9. On May 15, he purchased another 300 shares and then on May 22 he purchased a final 400 shares of Delta shares.

Steve purchased 300 shares of Delta stock on May 9. On May 15, he purchased another 300 shares and then on May 22 he purchased a final 400 shares of Delta shares. The company declared a dividend of $1.60 a share on April 30 to holders of record on Friday, May 23. The dividend is payable on June 2. How much dividend income will Steve receive on June 2 from Delta shares?

Expert Solution

Dividend income = (Shares purchase on May 9 + Share purchase on May 15) * Dividend

= (300 + 300) * $1.60

= $960

{Steven eligible for dividend on the stock on May 9 and May 15. Those purchase May 22 will not receive because they were not 2 working days before declaring the dividend or which is after the record date of May 23.)

jeff jeffy answered 2 years ago

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