Question

A man owned 75 shares of stock worth $50 each. The corporation declared a dividend of 8%, payable in stock. How many shares did he then own? A. 81 shares B. 90 shares C. 91 shares D. 95 shares

Answer 1

A. 81 shares

Step-by-step explanation:

From the question:

• The number of shares owned by the man = 75

,

• Per share value = $50

,

• Dividend, payable in stock = 8%

Since the dividend is payable in stocks, the number of shares the man then owns will be:

`\begin{gathered} \text{Number of shares owned+Percentage}* Number\text{ of shares owned} \\ 75+(8\%*75) \\ =75+(0.08*75) \\ =75+6 \\ =81\text{ shares} \end{gathered}`

The correct choice is A.