Question

The Starr Co. just paid a dividend of $0.215 per share on its stock. What is the annual dividend per share if the company pays dividends quarterly?

a) $0.215
b) $0.86
c) $0.43
d) $1.075

Answer 1

To find the annual dividend per share, multiply the quarterly dividend of $0.215 by 4 (the number of quarters in a year), resulting in an annual dividend of b) $0.86 per share.

Step-by-step explanation:

The question asks about calculating the annual dividend per share, given a quarterly dividend payment by Starr Co.

Since dividends are typically paid out on a regular basis, if Starr Co. just paid a dividend of $0.215 per share and this is the quarterly amount, then to find the annual amount, you would multiply this by the number of quarters in a year (which is 4).

Here's the calculation:

1. $0.215 per quarter dividend
2. 4 quarters in a year
3. Annual dividend = $0.215 × 4 = $0.86

Therefore, the correct answer is b)$0.86 for the annual dividend per share if the company pays dividends quarterly.