mark owns 153 share of stock selling for $14.75. How many more shares can he purchase after receiving a dividend of $0.80 per share?

Question

Compute the number of shares that can be purchased in each case.

Answer 1

Hi Sierra,

 

Mark will receive 153 time $0.80/share in dividends.  

 

This is $122.40 in dividends.

 

$122.40 will buy $122.40/$14.75/share of stock or 8.298 shares of stock.  If fractional stock ownership is not allowed the 

answer is simply  8 additional shares.