You Now Own 84 Shares of XYZ Stock, Which Is

question 58

Multiple Choice

You now own 84 shares of XYZ stock, which is selling for $40 each, 4 of which you just received from the XYZ corporation.XYZ has declared a:

• A)stock dividend of 5%.
• B)cash dividend of $4.
• C)stock dividend of 4%.
• D)cash dividend of $160.

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Definitions:

Constant Rate

A situation or condition in which a particular variable remains unchanged over a period of time.

Dividends

A corporation's distribution of profits to its shareholders as payments.

Paid

Refers to the status of a financial obligation that has been fulfilled or settled.

Constant Annual Dividend

This refers to dividends that are paid out to shareholders at a constant rate each year, without fluctuation.