Question

Billingsley United declared a $0.20 a share dividend on Thursday, October 16. The dividend will be paid on Monday, November 10 to shareholders of record on Friday, October 31. Which one of the following is the ex-dividend date?
A. Tuesday, October 28.
B. Wednesday , October 29.
C. Thursday, October 30.
D. Thursday, November 6.

Answer 1

Answer:

B) Wednesday, October 29

Explanation:

The ex-dividend date is two business days before the date a dividend is recorded. The ex-dividend date is used to determine who will receive the payment of the next dividends. If an investor buys a share after the ex-dividend date is established, the dividends will be paid to the seller, not the buyer.