Question

Solve the following dividend problem.

Sunn Solar Power Corporation has 50,000 shares of stock outstanding.

a. If it declares dividends of $40,000, what is the dividend per share of stock? $_____ per share

b. What would be your share of the declared dividend if you owned 100 shares? $_____

Answer 1

To find the dividend per share, we divide the total dividend amount by the total shares.
Dividend per share = 40,000 / 60,000
Dividend per share = $0.67

Your share = 100 x 0.67
Your share = $66.67

Answer 2

A.

To get dividend per share, we need to divide total dividend by total numbers of shares outstanding.

Dividend per share = $\frac{40,000}{50,000}=0.8$ dollars.

B.

Since per share you get $0.8, for 100 shares you will get $0.8*100=80$ dollars.

Also, that is $\frac{80}{40,000}*100=0.2$ percent of the total dividends.

ANSWER:

A. $0.8 per share

B. $80 (and that is 0.2% of total dividend)