Question

According to the stock certificates that Kwame's grandmother gave to him, the par value of each share is $45 and the dividend rate is 6 percent. What is the total dollar amount that Kwame should receive each year?

Answer 1

Kwame should receive N × $2.70 each year, where N represents the number of shares he owns.

Step-by-step explanation:

The total dollar amount that Kwame should receive each year can be calculated by multiplying the par value of each share ($45) by the dividend rate (6%).

To calculate the dividend amount per share, we can use the formula:

1. Dividend Amount = Par Value × Dividend Rate

Substituting the given values, the dividend amount per share is $45 × 6% = $2.70.

Since Kwame owns stock certificates, the total dollar amount he will receive each year will depend on the number of shares he owns. If Kwame owns N shares, the total dollar amount he will receive each year is N × $2.70.