Problema Solution
fifty shares of utility stock pay a dividend of $62.50. At the same rate, what is the dividend paid on 500 shares of utility stock?
Answer provided by our tutors
A dividend is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding.
let 'x' represent the dividend paid on 500 shares
50 : 62.50 = 500 : x
by solving we find:
x = $625
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the dividend paid on 500 shares is $625.