The total annual dividend which is received from owning 50 shares of stock A, when Company A Issues a $0.10 quarterly dividend to its shareholders, is $20.
What is market value?
Market value is the current price of a product, company, or something consorting to the stock of the market.
The total annual dividend received from owning 50 shares of stock A has to be found out when Company A Issues a $0.10 quarterly dividend to its shareholders.
- Quarterly dividend is paid in each three month of the year.
- The dividend is paid 4 times in a year.
For each quarter, the payment of dividend is,
[tex]0.10\times50\\5[/tex]
In a year,
[tex]5\times4\\20[/tex]
Thus, the total annual dividend which is received from owning 50 shares of stock A, when Company A Issues a $0.10 quarterly dividend to its shareholders is $20.
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