Difficulty: Medium
Average Score: 85%
Entry Exam
If Mr. Parker owns 150 shares of stock in Stark Industries and receives $180.00 per year in dividends, how much does Mr. Rogers receive for an annual dividend if he owns 400 shares of the same company?
Correct answer
A
Rationale
To determine how much Mr. Rogers receives annually in dividends for his 400 shares, you can set up a proportion based on the number of shares. The ratio of dividends to shares for Mr. Parker is $180/150 = $1.20 per share. By applying this ratio to Mr. Rogers with 400 shares, the calculation would be $1.20 x 400 = $480. Therefore, the correct answer is A, $480.