A small company is started up that makes blankets. The company sells a total of
4,000 shares at each to raise money to start the business. At the end of
the year, the company makes in profits and pays out in dividends
Complete parts (a) through (f) below.
(e) What is the dividend in dollars per share?
The dividend per share is
(Simplify your answer. Do not include the symbol in your answer. Round to two
decimal places as needed.)
(f) What is the dividend as a percentage of the share price?
The dividend per share is of the share price.
(Simplify your answer. Round to one decimal place as needed.)

Ask by Christensen Martinez. in the United States

Dec 13,2024

Question

A small company is started up that makes blankets. The company sells a total of
4,000 shares at each to raise money to start the business. At the end of
the year, the company makes in profits and pays out in dividends
Complete parts (a) through (f) below.
(e) What is the dividend in dollars per share?
The dividend per share is
(Simplify your answer. Do not include the symbol in your answer. Round to two
decimal places as needed.)
(f) What is the dividend as a percentage of the share price?
The dividend per share is of the share price.
(Simplify your answer. Round to one decimal place as needed.)

Ask by Christensen Martinez. in the United States

Dec 13,2024

UpStudy AI · Accepted Answer

To find the dividend as a percentage of the share price, we can use the following formula:

$$
\text{Dividend Percentage} = \left( \frac{\text{Dividend per Share}}{\text{Share Price}} \right) \times 100
$$

From the information provided:
- Dividend per share = $$ \$2.00 $$
- Share price = $$ \$20.00 $$

Now, substituting the values into the formula:

$$
\text{Dividend Percentage} = \left( \frac{2.00}{20.00} \right) \times 100
$$

Calculating this:

$$
\text{Dividend Percentage} = \left( 0.1 \right) \times 100 = 10.0\%
$$

Thus, the dividend as a percentage of the share price is $$ 10.0\% $$.
The dividend as a percentage of the share price is 10.0%.