Types of Dividends: You Own 20,000 Shares of Stock in Casi-Knows

question 55

Multiple Choice

Types of dividends: You own 20,000 shares of stock in Casi-knows, Inc., which has just sold one of its large resort hotels for $300 million. Management intends to return the entire revenue from the sale to shareholders by issuing a special dividend. If Casi-knows has 20 million shares outstanding, how large a dividend payment do you expect to receive?

• A) $20,000
• B) $200,000
• C) $300,000
• D) $1,000,000

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Definitions:

Overturn

To reverse the position, condition, or decision of something; typically implying a dramatic or significant change.

Monsoon

A seasonal wind shift that is often associated with dramatic changes in weather, particularly bringing significant rainfall to regions such as South Asia.

seasonally

Pertaining to or occurring with the seasons of the year, often influencing events, habits, or patterns of life cyclically.

Humidity

The amount of water vapor present in the air, expressed as a percentage of the maximum amount the air can hold at a given temperature.