The last date on which you can purchase shares of stock and still receive the dividend is the date which is

The last date on which you can purchase shares of stock and still receive the dividend is the date which is _____ business days prior to the date of record.    A.  1 B.  2 C.  3 D.  4 E.  5 Refer to section 17.1

20.

Kate purchased 500 shares of Fast Deliveries stock on Wednesday, July 7th. Ted purchased 100 shares of Fast Deliveries stock on Thursday, July 8th. Fast Deliveries declared a dividend on June 20th to shareholders of record on July 12th and payable on August 1st. Which one of the following statements concerning the dividend paid on August 1st is correct given this information?    A.  Neither Kate nor Ted is entitled to the dividend. B.  Kate is entitled to the dividend but Ted is not. C.  Ted is entitled to the dividend but Kate is not. D.  Both Ted and Kate are entitled to the dividend. E.  Both Ted and Kate are entitled to one-half of the dividend amount. Refer to section 17.1

21.	All else equal, the market value of a stock will tend to decrease by roughly the aftertax value of the dividend on the:    A.  dividend declaration date. B.  ex-dividend date. C.  date of record. D.  date of payment. E.  day after the date of payment. Refer to section 17.1

22.

Which one of the following statements related to dividend policy is correct?    A.  The primary question related to dividend policy is whether or not a firm should ever pay a dividend. B.  Both dividends and dividend policy are irrelevant. C.  Dividend policy focuses on the timing of dividend payments. D.  Homemade dividends increase the importance of a firm's dividend policy decisions. E.  Whether or not a firm ever pays a dividend is irrelevant to equity valuation. Refer to section 17.2

23.

Automatic dividend reinvestment plans: I. require that stockholders reinvest all of the dividends to which they are entitled. II. sometimes grant shareholders the privilege of purchasing additional shares at a discounted price. III. help shareholders create their own homemade dividend policies. IV. help make corporate dividend policies irrelevant to individual stockholders.    A.  II only B.  III only C.  II and III only D.  II, III, and IV only E.  I, II, III, and IV Refer to section 17.2.