If a dividend of 18c per share is declared how much will a shareholder who owns 3000 shares receive if the shares were issued for $6 each and are currently selling on the stock market at $5.40 each?

Question

Quizplus · Accepted Answer

The shareholder will receive $540 because the dividend payment is calculated as the dividend per share multiplied by the number of shares owned, which is 18c * 3000 = $540. The issue price and current market price of the shares are irrelevant to the calculation of dividend payments.

If a Dividend of 18c Per Share Is Declared How