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Andre bought 100, $10 stocks at a market price of $50. The Company declared a dividend of 10%. What was the dividend amount Andre earned? Andre earned $ _____in dividends.
A.100
B.500
C.250

Respuesta :

metchelle
Let us list down first the given.
100 $10 stocks at a market price of $50
declared divedend is 10%

Let us multiply 100 with $50-- that makes up $5000 for the 100 $10 of stocks.

the declared divedend is 10%, so we will get the 10% of $5000.
>change 10% into decimal number by dividing 10 by 100. The quotient would be 0.10.

$5000 x 0.10  is $500.
Therefore, Andre earned $500 in dividends.