Question

Assuming that $225,000 will be distributed as a dividend in the current year, how much will the common stockholders receive?

a. $144,000.
b. $1,180.
c. $33,000.
d. $19,200.

Answer 1

The amount common stockholders will receive as a dividend cannot be determined without knowing the dividend yield.

Step-by-step explanation:

Dividends are the portion of a company's profits that are distributed to its stockholders. To calculate how much common stockholders will receive, you need to determine the proportion of the $225,000 dividend that goes to common stockholders. This is usually given as a percentage and is known as the dividend yield. Without this information, we cannot determine the exact amount that common stockholders will receive. Therefore, none of the given options (a. $144,000, b. $1,180, c. $33,000, d. $19,200) can be considered correct answers.