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1 May, 09:31

Aaron purchased 500 shares of KMP stock on May 8. On May 16, he purchased another 200 shares and then on May 20 he purchased a final 100 shares of KMP stock. The company declared a dividend of $.94 a share on May 6 to holders of record on Friday, May 22. The dividend is payable on June 12. How much dividend income will Steve receive on June 12?

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  1. 1 May, 10:06
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    Steve will receive $752 dividend income on June 12.

    Explanation:

    => Dividend is declared on May 6 to holders of record on Friday, May 22.

    => Aaron shares purchased before May 22 are:

    500 shares on May 8

    200 shares on May 16

    100 shares on May 20

    ∴ 800 shares in total

    Aaron is having Total 800 Shares as on May 22. So he will receive Dividend for 800 shares.

    since Dividend per share = $0.94, therefore

    Total Dividend = 0.94 x Total share = => 0.94 x 800

    Total dividend = $752
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