Question

Sun Country Bus Lines has 80,000 shares of stock outstanding.

What would the dividend per share of stock be from a dividend declaration of $109,600?
How many shares of stock does Julie Norris hold if her share of the dividend is $6.85?

Answer 1

a. The dividend per share will be:

`(109600)/(80000) =$1.37/share`

b. To find the amount of shares Julie Norris has, you can take her dividend and divide by the dividend per share we found on a:

`(6.85)/(1.37)=<strong>5</strong>`

Or you can try with a rule of Three:

Shares Dividend

80.000 $109.600

x $6.85

`x=(6.85*80000)/(109600)=5`

Explanation:

Answer 2

$1.37 per share

5 shares

Explanation:

The dividend per share would be the total dividend declared in amount divided by the number of shares.

The number of shares held may further be determined as the result of the share of dividend received divided by the dividend per share.

the dividend per share of stock

= $109,600/80,000

= $1.37

Number of share held by Norris

= $6.85/$1.37

= 5 shares