The Lazy River Corporation has issued 4 million shares. Its earnings were $16 million of which it retained $8 million. What was the dividend per share?
A) $2
B) $3
C) $5
D) $6

Question

Quizplus · Accepted Answer

The dividend per share can be calculated by first determining the total dividends paid, which is the earnings minus the retained earnings ($16 million - $8 million = $8 million). Then, divide the total dividends by the number of shares (4 million) to get the dividend per share: $8 million / 4 million shares = $2 per share.

The Lazy River Corporation Has Issued 4 Million Shares