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Maggie Owns 100 Shares of FloorMart Inc

question 79

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Maggie owns 100 shares of FloorMart Inc.The firm has a semiannual dividend policy of $0.75 per share or the option to reinvest the cash dividends into additional shares of company stock.If the stock is selling for $55.00 per share ex-dividend,how many shares of stock will Maggie receive in the next dividend period if she chooses the dividend reinvestment plan?


Definitions:

Medicare Tax

A payroll tax that funds the Medicare program, which provides health insurance for eligible elderly and disabled individuals.

Employer's Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, such as social security and Medicare taxes.

Warranty Work

Repair or replacement services provided at no charge, covered under a product’s warranty, usually to fix defects or malfunctions within a specific period after purchase.

Sales Price

The amount a customer pays or is charged for a product or service.

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