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

---

Definitions:

Information Gathering

The process of collecting data and information from various sources to understand a subject or solve a problem.

Artist

An individual who creates art, such as paintings, music, sculpture, or literature, often using a range of materials and techniques.

Gallery

A room or building for the display or sale of artworks, but can also refer to a collection or exhibition of art.

Agency Costs

Expenses incurred due to conflicts of interest between shareholders and management, typically including monitoring, contracting, and opportunity costs.