Question

Rob owns stock in Dowc Beverage Co. and Agram Imports. He owns 86 more shares of Agram Imports, which pays a dividend of $5.15 per share, than he does of Dowc Beverage Co., which pays $6.52 per share. If Rob receives $4,585.15 in dividends annually, how many shares of Agram Imports does he own?
a.
535 shares
b.
635 shares
c.
398 shares
d.
441 shares

Answer 1

Let A = shares of Agram and D = shares of Dowc. Then A = D + 86 and
5.15A + 6.52D = 4585.15.

Substitute D = A − 86:
5.15A + 6.52(A − 86) = 4585.15
11.67A − 560.72 = 4585.15
11.67A = 5145.87
A ≈ 441

So Rob owns 441 shares of Agram Imports. (Answer: d.)