Melissa owns 1,000 of the total 5 million shares outstanding in Utopia Corporation.Utopia just declared a $9 million dividend.How much dividend income will Melissa receive?

Question

Quizplus · Accepted Answer

Melissa owns 1,000 shares out of 5 million shares outstanding. So, her ownership percentage is 1,000 / 5,000,000 = 0.0002. The total dividend declared is $9 million. So, Melissa's dividend income will be 0.0002 * $9 million = $1,800.

Melissa Owns 1,000 of the Total 5 Million Shares Outstanding