If a dividend of 10c per share is declared how much will a shareholder who owns 1000 shares receive if the shares were issued for $2 each and are currently selling on the stock market at $5.40 each?

Question

Quizplus · Accepted Answer

To calculate the total dividend amount, we multiply the dividend per share by the total number of shares owned:

10c x 1000 shares = $100

The price at which the shares were issued or their current market value are irrelevant for calculating the dividend payment. Therefore, options B, C, and D are incorrect. The correct answer is A.

If a Dividend of 10c Per Share Is Declared How