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# Ex-dividend date

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Dividend Chronology On Friday, December 8, Hometown Power Co.'s board of directors declares a dividend of 75 cents per share payable on Wednesday, January 17, to shareholders of record as of Wednesday, January 3. When is the ex-dividend date? If a shareholder buys stock before that date, who gets the dividends on those shares—the buyer or the seller?

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Dividend Chronology
Dividend Chronology On Friday, December 8, Hometown Power Co.'s board of directors declares a dividend of 75 cents per share payable on Wednesday, January 17, to shareholders of record as of Wednesday, January 3. When is the ex-dividend date? If a ...

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Solution discusses the ex-dividend date

\$2.19

## Conversion ratio for bonds; Ex-dividend date

1. What is the conversion ratio for each of the following bonds?

a.) A \$1,000 par-value bond that is convertible into common stock at \$43.75 per share.
b.) A \$1,000 par value bond that is convertible into common stock at \$25.00 per share.

2. Morris wishes to purchase shares of Deb, Inc. The company's board of directors has declared a cash dividend of \$0.80 to be paid to holders of record on Wednesday, May 12.

a.) What is the last day that Morris can purchase the stock and still receive the dividend?
b.) What day does this stock begin trading ex-dividend?
c.) What change, if any, would you expect in the price per share when the stock begins trading on the ex-dividend day?