Question

Nick owns 500 of the 100,000 shares available.

A) what percentage of the company does Nick own?

B) the company earns $2,500,000, how much of these earnings is Nick entitled to?

Answer 1

To get the percentage of how much Nick owns, we have to divide the part (500) by the whole (100,000) then multiply the product by 100.

500 / 100,000 = 0.005

0.005 × 100 = .5%

Nick is entitled to $2,500,000 × .5% = $12,500