Finra Exam Series-7 Topic 7 Question 105 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 105
Topic #: 7

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 Asuncion at Jan 10, 2025, 06:33 PM

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Glory

13 days ago

I'm no math wizard, but I'm pretty sure the answer is B) $0.50. Time to put on my thinking cap!

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Vincent

22 days ago

I'm not sure, but I think the dividend per share is $0.50 too.

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Katina

24 days ago

Haha, if only the dividend was C) $2.00! Unfortunately, I think the right answer is B) $0.50.

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Belen

24 days ago

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

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Yolande

26 days ago

Ooh, C) $2.00 would be nice, but I doubt that's the correct answer. I'll go with B) $0.50.

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Nida

4 days ago

I think it's B) $0.50.

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Angelica

29 days ago

D) $2.22 seems a bit high, doesn't it? I'm going with B) $0.50.

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Rima

1 months ago

Hmm, I think the answer is B) $0.50. That makes the most sense to me based on the information provided.

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Galen

14 days ago

User 3: Yes, $0.50 per share makes sense based on the dividend amount and number of shares.

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Jeanice

16 days ago

User 2: I agree, that seems to be the correct calculation.

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Glenn

17 days ago

User 1: I think the answer is B) $0.50.

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Lorrie

1 months ago

I think the dividend per share is $0.50.

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