Maggie Owns 100 Shares of FloorMart Inc

question 79

Multiple Choice

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?

• A)0.73 shares
• B)1.36 shares
• C)7.33 shares
• D)13.64 shares

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Definitions:

Government Subsidized Property Insurance

Insurance programs supported by the government to make coverage available and affordable, often in high-risk areas.

Insurance Costs

represent the expenses related to purchasing insurance coverage, which provides financial protection against potential future losses or damages.

Business Risk

The exposure a company or investor faces from the uncertainties that could affect the financial, operational, and reputational standing of a business.

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise.