Question

Nolan owns 400 shares of common stock in a company. the company pays a dividend of $ 0 . 50 per share per quarter. the current price of the stock is $ 55 . 00 per share. how much money does nolan receive from an annual dividend? round your answer to the nearest dollar, if necessary. enter your answer in the space provided.

Answer 1

Nolan receives $800 from the annual dividend, which is calculated by multiplying the quarterly dividend of $0.50 by 4 to find the annual dividend per share, and then multiplying it by the total number of shares he owns.

Step-by-step explanation:

The student asked how much money Nolan receives from an annual dividend if he owns 400 shares of common stock in a company that pays a dividend of $0.50 per share per quarter.

To calculate annual dividends, we first determine the total dividends per share for the year by multiplying the quarterly dividend by 4 (since there are four quarters in a year). After obtaining the annual dividend per share, we then multiply it by the number of shares Nolan owns.

Step 1: Calculate annual dividend per share: $0.50 × 4 = $2.00

Step 2: Calculate Nolan's annual dividend: 400 shares × $2.00 = $800

Therefore, Nolan receives $800 from the annual dividend.