Your portfolio is 240 shares of Callahan, Inc. The stock currently sells for $94 per share. The company

Your portfolio is 240 shares of Callahan, Inc. The stock currently sells for $94 per share. The company has announced a dividend of $2.50 per share with an ex-dividend date of April 19. Assuming no taxes, what is your portfolio value as of April 19

Related Posts

This Post Has 3 Comments

  1. The  atomic nucleus  is the small, dense region consisting of  protons  and  neutrons  at the center of an  atom, discovered in 1911 by  ernest rutherford based on the 1909  gold foil experiment.

  2. $21,960

    Explanation:

    the value of the portfolio before the ex-dividend date = $94 x 240 stocks = $22,560

    Generally when investors are expecting a dividend, they will pay a higher price for a stock just before the ex-dividend date. After the stockholders' eligible for the dividend are recorded (ex-dividend date), the seller of the stock will receive the dividend, so the stock's sales price will decrease by the dividend amount.

    New price per stock at ex-dividend date = $94 - $2.50 = $91.50

    the value of the portfolio at the ex-dividend date = $91.50 x 240 stocks = $21,960

Leave a Reply

Your email address will not be published. Required fields are marked *