Question

11. Mary owns 25 shares of stock of ABC Company. She hears on the 1 point news that the Board of Directors has voted to pay a dividend of 50 cents per share of stock for stockholders of record on March 1, 2020. How much should she be receiving in dividends? O $25 O 50 cents O $12.50 O Cannot calculate the answer with the information provided

Answer 1

The Board of Directors decided that 1 share is equivalent to $0.50. To calculate how much money is equivalent to 25 shares, we can use the next proportion:

$\frac{1\text{ share}}{25\text{ shares}}=\frac{0.50\text{ \ }}{x\text{ \ }}$

Solving for x:

$\begin{gathered} 1\cdot x=0.50\cdot25 \\ x=12.50\text{ \ } \end{gathered}$