Financial Management: Core Concepts, Third Edition

Problems

1. Time line of cash dividend. Atlantis Manufacturing, Inc. issues the following press release: “Atlantis Manufacturing will pay a quarterly dividend of $0.50 per share to record holders as of the 10th of this month on the 20th of this month.” The company made this announcement on July 3, 2014. Draw a time line of the dates around this dividend payment with a two-day settlement for stock transactions. Label the declaration date, the ex-date, the record date, and the payment date.

2. Time line of cash dividend. Camelot Manufacturing, Inc. issues the following press release: “Camelot Manufacturing will pay a quarterly dividend of $1.00 per share on the 20th of the following month to record holders as of the 20th of this month.” The company ...