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?

A. $100.00
B. $500.00
C. $1,000.00
D. $5,000.00

Answer 1

50000/25000=2 per share
50*2=100

Answer 2

The answer is option A : Sam will receive $100.

Explanation:

XYZ Company declares dividends of $50,000.

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

So, the cost of 1 share =
`(50000)/(25000)=2` dollars

Given is - Samuel Smith owns 50 shares of stock.

Hence cost for 50 shares =
`2*50=100` dollars

Hence, the answer is option A : $100.