Question

You own 50 of Xenon Corporation's 5500 Shares. You purchased them at $75 each. The company decides to issue a dividend of 55,000. What is your ROI ?

Answer 1

Answer:

Step-by-step explanation:

Your first step is to figure out how much money each share gets. In other words, what's their cut of the dividend?

Formula

Dividend / share = Total dividend / Total number of shares.

ROI = dividend / Cost  * 100

Givens

# shares owned = 50

Total shares issued = 5500

Dividend total = 55000

Cost of 1 share = 75

Note Not all the information is needed.

Solution

dividend / share = 55000 / 5500

dividend / share = 10 dollars.

ROI = 10/75 * 100

ROI = 13.3 %