1) Kelsey International declared a dividend on Friday, November 13, that is payable on Friday, December 11, to holders of record on Monday, November 30. What is the latest date that you can purchase this stock if you wish to receive this dividend? Assume there are no banking holidays within this period of time.
Tuesday, November 24
Wednesday, November 25
Thursday, November 26
Friday, November 27
Monday, November 30
2) Which one of the following would tend to favor a low-dividend payout?
Higher tax rates on capital gains than on dividend income
High flotation cost for equity issues
Endowment fund investors who cannot spend principal
Investors' desire for a high-dividend yield
Elimination of the tax deferral on capital gains