How Much Will a Shareholder Receive in Dividends If They

question 56

Multiple Choice

How much will a shareholder receive in dividends if they own 5000 shares, the dividend is 20c per share, the shares were issued for $6 each, and the current market value of the shares is $6.25 each?

• A) $nil
• B) $1 000
• C) $1 250
• D) $1 200

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Definitions:

Population Average

The mean value of a characteristic within an entire population.

Standard Error

The standard deviation of the sampling distribution of a statistic, often used to estimate the accuracy of a sample mean compared to the population mean.

Sample Mean

The average of all observed values in a sample from a population.

Level of Significance

A statistical measure that determines the threshold at which a hypothesis test results in a rejection of the null hypothesis.