Question

If a company has a dividend yield of 2.5%, a share price of $18 per share, how much will I receive in dividends if I own 10,000 shares? Do not include commas or the dollar sign in your answer.

Answer 1

In order to determine how much you will reiceive in dividens, you first calculate the price of your shares, which are 10,000 shares.

18(10,000) = 180,000

The cont of your shares are $180,000.

Next, you calculate the 2.5% of the previous cost, just as follow:

(2.5/100)(180000) = 4500

Hence, you will receive 4500 dollars due to the dividens of the price of your shares.