Question

Denzel wants to use his dividends to purchase more stock. He owns 675 shares. The dividend is $1.182 per share. How many shares of stock priced at $4.539 can he purchase?

Answer 1

Denzel can purchase 175 shares of stock priced at $4.539 using his dividends.

Step-by-step explanation:

To calculate the number of shares Denzel can purchase, we need to divide the total amount of dividends he has by the price per share of the stock he wants to buy.

Dividends = Number of Shares x Dividend per Share

Number of shares = 675

Dividend per share = $1.182

Total Dividends = 675 x $1.182 = $796.95

The price per share of the stock Denzel wants to buy is $4.539.

Number of shares Denzel can purchase = Total Dividends / Price per Share

Number of shares = $796.95 / $4.539 = 175.77

Since Denzel cannot purchase a fraction of a share, he can purchase 175 shares of stock.