Question

Chuck's Computer Corporation has 10,000 shares of stock outstanding.

If it declares dividends of $12,000, what is the dividend per share of stock?

What would be your share of the declared dividend if you owned 50 shares?

Answer 1

12,000÷10,000=1.2
1.2×50=60

Answer 2

Divident per share =
`(Total Dividend Amount)/(Number Of Shares)`

We know total dividend amount is $12,000 and number of shares is 10,000. Dividend per share is
`(12,000)/(10,000)=1.2` dollars.

How much will someone with 50 shares get?

If 1 share gets $1.2 as dividend, 50 shares will get
`50*1.2=60` dollars as dividend.

Furthermore, how much is $60 out of total $12,000 (in dividends)? We divide 60 by 12,000 and then multiply by 100.

`(60)/(12000)=0.005*100=0.5`percent.

ANSWER:

Dividend per share is $1.2

For owning 50 shares, he/she should get $60 (which is 0.5% of original)