Question
suppose you owe 75 shares of microsoft, which pays a dividend of $0.13 per share per year. how much will you receive in dividends over 5 years, assuming the dividends stay the same and you buy no more stock?
A. $29.25
B. $48.75
C. $75.00
D. $9.75
A. $29.25
B. $48.75
C. $75.00
D. $9.75
Answers
GPT-4o mini
To calculate the total dividends you would receive over 5 years, follow these steps:
1. Calculate the annual dividend per year:
- You have 75 shares and each share pays $0.13 in dividends.
- Annual dividend = 75 shares × $0.13/share = $9.75.
2. Calculate the total dividends over 5 years:
- Total dividends over 5 years = Annual dividend × 5 years = $9.75 × 5 = $48.75.
Thus, you would receive **$48.75** in dividends over 5 years.
The correct answer is **B. $48.75**.
1. Calculate the annual dividend per year:
- You have 75 shares and each share pays $0.13 in dividends.
- Annual dividend = 75 shares × $0.13/share = $9.75.
2. Calculate the total dividends over 5 years:
- Total dividends over 5 years = Annual dividend × 5 years = $9.75 × 5 = $48.75.
Thus, you would receive **$48.75** in dividends over 5 years.
The correct answer is **B. $48.75**.