Question

Mr. Tan purchased 1,000 shares of stocks at P30 par value. How much is his dividend if the percentage declared by the company is 1.5%?

Answer 1

Answer:

P450

Explanation:

A dividend is a share of profits and retained earnings that a company pays out to its shareholders. It can be issued as a certain amount on each share or as a percentage of stocks.

In the given problem:

• The number of shares of stocks = 1000

,

• Par Value = P30

If the percentage declared by the company is 1.5%

$\begin{gathered} \text{Dividend}=1.5\%\times30\times1000 \\ =\frac{1.5}{100}\times30\times1000 \\ =P450 \end{gathered}$

His dividend is P450.