197k views
2 votes
Triad common stock is selling for $27.80 a share and has a dividend yield of 2.8 percent. What is the dividend amount?

A. $.31
B. $.78
C. $3.49
D. $4.25
E. $7.80

User Maslick
by
4.1k points

1 Answer

2 votes

Answer:

B. $.78

Step-by-step explanation:

Shares are units of ownership of a company that is sold to investors in order to get funds needed to run operations and other business needs.

The investors receive a payment on their shares form the profit made by the business. This is called dividend.

In the given instance Triad common stock is selling for $27.80 a share with dividend yield of 2.8 percent.

To get the dividend amount multiply share price by the dividend percentage.

Dividend = 0.028 * 27.80 ~ $0.78

User Tony Bui
by
4.1k points