Question

Darryl’s portfolio includes 66 shares of Essentia Inc., 95 shares of SFT Legal, and 180 shares of Grath Oil. If Essentia Inc. pays a yearly dividend of $1.79 per share, SFT Legal pays $2.62 per share, and Grath Oil pays $1.18 per share, how much does Darryl receive in dividends every year?

A. $610.39
B. $893.42
C. $402.38
D. $579.44

Answer 1

The correct option is d. $579.44

Step-by-step explanation:

For computing the total dividend which is to be received every year, we have to calculate the sum of different portfolios. The calculation is shown below:

= Essentia Inc shares × dividend per share + SFT Legal shares × dividend per share + Grath Oil shares × dividend per share

= 66 × $1.79 + 95 × $2.62 + 180 × $1.18

= $118.14 + $248.9 + $212.4

= $579.44

Hence, the $579.44 should Darryl receive in dividends every year.

Thus, the correct option is d. $579.44