1: A man owns 50 shares of stock worth $30 each. The corporation declared a dividend of 6% payable in stock. How many shares did he then own?
53
To calculate the number of additional shares the man owns due to the stock dividend, you can follow these steps:
Step 1: Find the total value of the stock he owns.
The man owns 50 shares worth $30 each, so the total value of his stock is: 50 shares * $30/share = $1500.
Step 2: Calculate the dividend amount in dollars.
The dividend is declared as 6% of the total value of his stock. So, the dividend amount in dollars is: $1500 * 6% = $90.
Step 3: Determine the price of one share.
Since the dividend is payable in stock, we need to find the price of one share. We can divide the dividend amount by the price of one share. Let's call this price "x": $90 / x = 1 share.
Step 4: Calculate the number of additional shares.
To find the number of additional shares, we divide the total value of his stock (including the dividend amount) by the price of one share: ($1500 + $90) / x = new total shares.
Therefore, the man would then own a total of new total shares.
To find out how many shares the man owned after the dividend was declared, we need to calculate the number of additional shares he received.
First, let's calculate the total value of the dividend. The dividend is 6% of the total value of the shares the man owns. Since he owns 50 shares worth $30 each, the total value of his shares is:
Total value = Number of shares * Value per share
Total value = 50 * $30 = $1500
Now, to find the value of the dividend, we multiply the total value by the dividend percentage:
Dividend value = Total value * Dividend percentage
Dividend value = $1500 * 6% = $1500 * 0.06 = $90
Since the dividend is payable in stock, we need to find out how many shares the man can buy with the dividend value. Since each share is worth $30, the number of shares he can buy is:
Number of shares = Dividend value / Value per share
Number of shares = $90 / $30 = 3 shares
Finally, we add the additional shares to the initial number of shares the man owned:
Total shares = Initial number of shares + Additional shares
Total shares = 50 shares + 3 shares = 53 shares
Therefore, after the dividend was declared, the man then owned 53 shares.