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.

What is the total quarterly dividend income Nolan receives from his shares?

a) $200
b) $400
c) $800
d) $1,000

Answer 1

Nolan receives a total quarterly dividend income of $200, calculated by multiplying the number of shares he owns (400) by the dividend amount per share ($0.50).

Step-by-step explanation:

The total quarterly dividend income Nolan receives from his shares can be calculated by multiplying the number of shares he owns by the dividend paid per share. Nolan owns 400 shares of common stock. The company pays a dividend of $0.50 per share per quarter. Therefore, to find the total dividend income per quarter, we perform the following calculation:

Total Quarterly Dividend Income = Number of Shares × Dividend per Share

Total Quarterly Dividend Income = 400 shares × $0.50 per share

Total Quarterly Dividend Income = $200

So, the correct answer is (a) $200.