Finra Exam Series-7 Topic 2 Question 96 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 96
Topic #: 2

The Bubba Corporation has 900,000 of common outstanding and holds 100,000 shares as treasury stock. At the end of the third quarter $450,000 is distributed as a dividend on the common.

How much is the dividend per share?

A$0.45

B$0.50

C$2.00

D$2.22

Show Suggested Answer

Suggested Answer: A

$0.45. Since treasury stock does not receive dividends, divide $450,000 by the outstanding 100,000 shares to arrive at $0.45 per share.

by Johnna at Sep 09, 2024, 08:45 PM

Limited Time Offer

25%

Off

Get Premium Series-7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Stephanie

6 months ago

Well, butter my biscuit and call me a genius! The correct answer is A) $0.45 per share. Y'all need to brush up on your basic arithmetic, that's for sure.

upvoted 0 times

...

Leontine

6 months ago

Hold on now, ain't nobody got time for all that fancy math. I'm goin' with C) $2.00 per share. Why? 'Cause it's a nice round number, that's why!

upvoted 0 times

Nichelle

5 months ago

I'm sticking with C) $2.00, it just feels right to me.

upvoted 0 times

...

Blossom

5 months ago

I'm not sure about that, I think it might be B) $0.50 instead.

upvoted 0 times

...

Xochitl

5 months ago

I agree with you, A) $0.45 seems like the most reasonable option.

upvoted 0 times

...

Stephane

5 months ago

I think you might be overestimating the dividend per share. I'm going with A) $0.45.

upvoted 0 times

...

Erasmo

7 months ago

I'm not sure, but I think it might be $0.45 instead.

upvoted 0 times

...

Niesha

7 months ago

I agree with Chau, $0.50 makes sense because $450,000 divided by 900,000 shares is $0.50.

upvoted 0 times

...

Chau

7 months ago

I think the dividend per share is $0.50.

upvoted 0 times

...

Josephine

7 months ago

Alright, time to crunch some numbers. Divide the $450,000 dividend by the 900,000 shares outstanding, and you get... D) $2.22 per share. Easy peasy, lemon squeezy!

upvoted 0 times

...

Timothy

7 months ago

Hmm, let's see here... 900,000 shares outstanding, 100,000 as treasury stock, and $450,000 dividend. I'm thinkin' B) $0.50 is the way to go. Simple math, y'all!

upvoted 0 times

Dominga

7 months ago

Yep, it's simple division. $450,000 divided by 900,000 shares gives $0.50 per share.

upvoted 0 times

...

Sharan

7 months ago

I agree with you, B) $0.50 sounds right to me too.

upvoted 0 times

...