Answer:
Hence, Sam's share of the declared dividends is $100.
Step-by-step explanation:
XYZ Company declares dividends of $50,000.
Samuel Smith owns 50 shares of stock.
The company has sold 25,000 total shares of stock.
That means $50,000 is to be divided into 25000 so that we get the cost of 1 share.
cost of 25000 shares= $50,000
cost of 1 share=$ (50,000/25,000)= $ 2.
Hence cost of 50 shares=$ (2×50)=$100.
Hence, Sam's share of the declared dividends is $100.
