Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   Record dividend declartion and its distribution (https://www.askmehelpdesk.com/showthread.php?t=338809)

  • Apr 7, 2009, 05:19 AM
    mszinastew
    record dividend declartion and its distribution
    On February 5, the directors declare a 15% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $50 per share on February 5 before the stock dividend. The stock’s market value is $43.60 per share on February 28.
  • Apr 7, 2009, 05:37 AM
    Perito

    15% of $50 (the day they declared the dividend) will turn out to be 17.2% on February 28, but the percentage (usually they don't declare it as a percentage -- they declare an amount) was decided on the day they declared the dividend.
  • Apr 7, 2009, 05:45 AM
    ROLCAM

    Dividend = $50.00
    Ex Dividend **=$ 43.60
    ____________________

    Difference ****= $6.40. JUST ABOUT RIGHT!

    WHY? = 15% of $50 = $ 7.50.
    It should have gone down to $42.50
    BUT it maintained its value and actually rose
    $1.10.
  • Apr 8, 2009, 02:10 AM
    morgaine300

    You can't actually record this without knowing the number of shares outstanding. I'm assuming the problem has this information?

  • All times are GMT -7. The time now is 12:54 AM.