Question

Zeller, Inc., has 50,000 shares of stock outstanding. Zeller declares a dividend of $480,000. What is the dividend per share?

0.10
0.96
9.60
10.00

Answer 1

Given:
50,000 shares of stock outstanding
$480,000 dividend

This is just a simple division problem, we divide the total amount by the number of shares that earns a dividend.

$480,000 ÷ 50,000 = $9.60 dividend per share.