Question

Adam Hoover bought 72 shares of General Oil Co, stock at a par value of $85 per share. The stock paid annual dividends of 7 1/2%. How much did Adam receive in dividends this year?

Answer 1

Adam Hoover will receive $459 in dividends this year for his 72 shares of General Oil Co. stock, with shares at a par value of $85 and a 7.5% annual dividend rate.

Step-by-step explanation:

To calculate the amount of dividends Adam Hoover will receive from General Oil Co. stock, we need to apply the dividend percentage to the total value of his stocks. The annual dividend rate is 7.5%, and the par value per share is $85.

The total investment value is calculated by multiplying the number of shares by the par value per share:

72 shares × $85 per share = $6,120

Next, the annual dividend amount received is calculated by applying the 7.5% dividend:

$6,120 × 7.5% = $459

Therefore, Adam Hoover will receive $459 in dividends this year for his General Oil Co. stock holdings.