STOCKS

Ink, Inc. has 40,000 shares of stock outstanding. The company declares dividends of $120,000. 1. What is the dividend per share of stock? 2. If Tim Worker owns 45 shares of, stock, what is his share of the declared dividends?

1. $3.00 2. $135.00

MS & T has 100,000 shares of stock outstanding. 1. If it declares dividends of $50,000, what is the dividend per share? 2. Marty owns 25 shares of stock in MS & T. What is his share of this declared dividend?

1.$0.50 2. $12.50

Alameda Tent Company has 75,000 shares of stock outstanding. What total dividend declaration would be necessary for the dividend per share to be $2.00.

150,000

When a person purchases stock in a company, he is in reality loaning money to the company.

False

XYZ Company declares dividends of $50,000. Samuel Smith owns 50 shares of stock. The company has sold 25,000 total shares of stock. Find out what Sam's share of the declared dividends is.

First find out how much per share is to be paid. To do this step, we divide the total dividends by the number of shares. $50,000 divided by 25,000 shares is $2.00 per share. Then we multiply the amount per share by the number of shares that Sam owns: $2.00 x 50 = $100.00. Sam will receive $100.00.

Sam decides to buy 100 shares of DEF company. They cost $16.60 a share. The commission is 6% of the total price. Sam has $2000.00. Can he afford to buy 100 shares?

Step 1. Multiply $16.60 by 100 = $1,660.00 Step 2: Multiply $1,660 by .06 = $99.60 Step 3. Add Answer = $1,759.60

Another part of your return may be that if the company becomes successful, you can sell your stock for more money than you paid for it.

True

Buying shares in a company is one way to invest money.

True

Dividends are part of the return you receive on your investment when you buy stock.

True

stocks

a share in the ownership of a company

dividend

a share of money earned as profits by a company and distributed to its stockholders