SIE Exam Question 415: Answer and Explanation

Question: 415

When a Board declares a cash dividend, the order of dates beginning with that announcement date is:

I. Declaration date

II. Payment date

III. Record date

IV. Ex-dividend date

• A. I, III, IV, II
• B. II, III, IV, I
• C. I, II, IV, III
• D. I, IV, III, II

Correct Answer: D

Explanation:

D: Remember the acronym D E R P --- this is the chronological order of the relevant dates when a cash dividend is declared: declaration date; ex-dividend date; record date; payable date