Final answer:
The dividend per share of stock for Super Widget Corporation is $2.125, and Kevin Rainey's share of the declared dividend, for the 50 shares he owns, amounts to $106.25.
Step-by-step explanation:
The dividend per share of stock that Super Widget Corporation declares can be calculated by dividing the total declared dividends by the number of shares outstanding. In this case, if Super Widget Corporation declares dividends of $42,500 and has 20,000 shares of stock outstanding, the dividend per share would be calculated as follows:
Dividend per share = Total Dividends ÷ Number of Shares
Dividend per share = $42,500 ÷ 20,000
Dividend per share = $2.125
As to the second part, Kevin Rainey's share of the dividends can be determined by multiplying the dividend per share by the number of shares he owns, which in this case is 50 shares:
Kevin Rainey's dividend = Dividend per share × Number of shares Kevin owns
Kevin Rainey's dividend = $2.125 × 50
Kevin Rainey's dividend = $106.25
Therefore, the dividend per share of stock for Super Widget Corporation is $2.125, and Kevin Rainey's share of the declared dividend is $106.25.