Question

A company has its shares valued at 80 dollars per share and gives 7 dollars per share to every shareholder. What dividends does the company provide investors?

A. 73 dollars.
B. 80 dollars
C. 87 dollars
D. 7 dollars

Answer 1

The company is providing a dividend of $7 per share to each shareholder. The share value of $80 is separate from the dividend payout, and the correct response is $7 for each share owned. Therefore, the correct option is D. $7 dollars.

Step-by-step explanation:

When a company pays dividends, it distributes a portion of its profits to shareholders. In this case, the company is providing a dividend of $7 per share. This means that for each share a shareholder owns, they would receive $7. The share valuation of $80 does not affect the dividend payout. Therefore, if each share is given a dividend of $7, the correct answer is D. $7 dollars.