Question

XYZ Company declares dividends of $50,000. Samuel Smith owns 50 shares of stock. The company has sold 25,000 total shares of stock. What is Sam's share of the declared dividends?

Answer 1

Hence, Sam's share of the declared dividends is $100.

Explanation:

XYZ Company declares dividends of $50,000.

Samuel Smith owns 50 shares of stock.

The company has sold 25,000 total shares of stock.

That means $50,000 is to be divided into 25000 so that we get the cost of 1 share.

cost of 25000 shares= $50,000

cost of 1 share=$ (50,000/25,000)= $ 2.

Hence cost of 50 shares=$ (2×50)=$100.

Hence, Sam's share of the declared dividends is $100.