Question

Solve the following dividend problem

Sunn Solar Power Corporation has 60,000 shares of stock outstanding.

If it declares dividends of $40,000, what is the dividend per share of stock?

What would be your share of the declared dividend if you owned 100 shares?

Answer 1

Dividend per share of stock

$0.6667

Your share of the declared dividend if you owned 100 shares

$66.67

Explanation:

To determine the dividend per share of stock we simply divide the declared dividend by the number of shares of stock outstanding;

`(40000)/(60000)=$0.6667`

This implies that for every share of stock an individual is entitled to a dividend of $0.6667. Consequently, for 100 shares the dividend will be equal to;

`0.6667(100)=66.67`