Question

Question 5 of 10Suppose you own 75 shares of Microsoft, which pays a dividend of $0,13 pershare per year. How much will you receive in dividends over 5 years,assuming the dividends stay the same and you buy no more stock?A. $75.00B. $48.75C. $29.25D. $9.75

Answer 1

Answer:$48.75

Step-by-step explanation:

You earn $0.13 per share as dividend and you own 75 shares. Calculating dividend per year is then done by multiplying the dividend per share by the number of shares held. That is,
75 * $0.13, which is equal to $9.75.
Since there is no increase in the number of stock held as well as the dividend per share, dividend received over 5 years will then be calculated as:
$9.75 * 5 years = $48.75

Answer 2

Since you earn $0.13 per share in a year and you have 75 of them the total amoun you earn for year is:

`0.13\cdot75=9.75`

Now that we know this we just have to multiply by the number of years we want to know:

`9.75\cdot5=48.75`

Therefore, you will receive $48.75 after five years and the answer is B.