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Stock Ownership and Dividend Income

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On July 7, you purchased 500 shares of Wagoneer, Inc. stock for $21 a share. On August 1, you sold 200 shares of this stock for $28 a share. You sold an additional 100 shares on August 17 at a price of $25 a share. The company declared a $0.95 per share dividend on August 4 to holders of record as of Wednesday, August 15. This dividend is payable on September 1. How much dividend income will you receive on September 1 as a result of your ownership of Wagoneer stock?

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Stock ownership and dividend income is examined.

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Solution:

The original purchase of Wagoneer,Inc stock on July 7th = 500 shares @ $21 a share = $10,500 ---> cash outflow from you

On August, 1st you sold 200 shares @ $28 a share = $ ...

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