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Question

Kristy Chancellor owns 540 shares of FiberQueue $100 par value common stock. The stock pays a dividend of 4%. What total amount will Kristy receive in dividends?

A.$2,016

B. $21.60

C.$5,184

D. $2,160

E.$1,350

Solution

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4%×$100×540=$2,1604\% \times \$100 \times 540=\$2,160

The dividend is the product of the dividend rate, the par value and the number of shares.

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