Question

The Hormel Corporation has an annual dividend rate of $1.04. If you owned 5,000 shares of

Hormel, how much would you receive annually in dividends?
$4,900
$5,000
$5,100
$5,200

Answer 1

$4,900

Explanation:

`\frac{\mbox{number of shares}}{\mbox{annual dividend}} = (5,000)/(1.04)`

This simplifies to 4807.7, which you can round to $4,900.