If a Dividend of 18c Per Share Is Declared How

question 51

Multiple Choice

If a dividend of 18c per share is declared how much will a shareholder who owns 3000 shares receive if the shares were issued for $6 each and are currently selling on the stock market at $5.40 each?

• A) Nil
• B) $496
• C) $540
• D) $1800

---

Definitions:

Mutual Agency

A principle in partnership where each partner is both an agent and a principal, permitting each partner to bind the partnership in contract within the scope of the partnership’s business.

Unlimited Liability

A legal obligation where an individual's responsibility for debt extends beyond what they've invested in a business, potentially affecting personal assets.

Partners' Capital Statement

A financial report that shows the changes in each partner's equity in a partnership over a period of time.

Income Ratio

A financial metric comparing different aspects of income, such as net profit to sales, to assess profitability or performance.