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AFP CTP Question # 137 Topic 14 Discussion

CTP Exam Topic 14 Question 137 Discussion:
Question #: 137
Topic #: 14

Kahuna Boards Co. has just experienced a very profitable year and wants to share the success with its shareholders. In order to pay dividends, a sequence of events must occur. Which of the following chronological sequence of events is correct?

1. Stock is sold without the upcoming dividend attached.

2. Dividend is paid.

3. Board of directors announces the dividend.

4. Holders of record are specified.


A.

3, 4, 1, 2


B.

3, 4, 2, 1


C.

4, 3, 2, 1


D.

4, 3, 1, 2


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