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Maggie Owns 100 Shares of FloorMart Inc

Question 96

Multiple Choice

Maggie owns 100 shares of FloorMart Inc.The firm has a semiannual dividend policy of $0.75 per share or the option to reinvest the cash dividends into additional shares of company stock.If the stock is selling for $55.00 per share ex-dividend,how many shares of stock will Maggie receive in the next dividend period if she chooses the dividend reinvestment plan?


A) 0.73 shares
B) 1.36 shares
C) 7.33 shares
D) 13.64 shares

Correct Answer:

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