1. MNO stock declares a $1.56/share dividend on October 19, payable on November
ID: 2630682 • Letter: 1
Question
1. MNO stock declares a $1.56/share dividend on October 19, payable on November 28 to holders of record November 10. If you buy 200 shares of MNO on November 2 at $59.21/share and sell it on November 24 at $51.79/share, you will earn
total dividends of $
and total returns of
2. PQR stock declares a $1.00/share dividend on August 4, payable on September 13 to holders of record August 26. If you buy 600 shares of PQR on August 29 at $53.57/share and sell it on September 9 at $51.63/share, you will earn
total dividends of $
and total returns of
Solve both problems and compare
Explanation / Answer
case 1 =
dividend earn per share = 1.56 per share, as shares are purchased before nov 10
total = 1.56*200 = 312
total return = sellig price + dividend earned - purchase price = 59.21+1.56-51.79 = -5.86
total = -5.86*200=-1172
.
case 2
dividend earn per share =$ 0 per share, as shares are purchased before nov 10after 26 august
total return = sellig price + dividend earned - purchase price = 51.63+0-53.57 =-1.94
total = -1.94*600 = -1164
.
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