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?

Rationale

Mr. Rogers receives $480 for an annual dividend.

To determine Mr. Rogers' annual dividend, we can calculate the dividend per share based on Mr. Parker's holdings and then multiply by the number of shares Mr. Rogers owns. Mr. Parker receives $180 for 150 shares, which means each share yields $1.20 in dividends. Therefore, for 400 shares, Mr. Rogers receives $480.

A (480) CORRECT

This choice accurately reflects the calculation of Mr. Rogers' dividend: each share pays $1.20, so with 400 shares, he receives 400 x $1.20 = $480. This aligns perfectly with the dividend distribution based on their respective shareholdings in Stark Industries.

B (500) YOUR ANSWER

Selecting $500 suggests a misunderstanding of the dividend per share calculation. Based on the information provided, the annual dividend per share is $1.20, leading to a total of $480 for 400 shares. Thus, this choice does not correspond to any correct dividend calculation.

C (450) YOUR ANSWER

This option also miscalculates the dividend amount. To arrive at $450, one might incorrectly assume a different dividend per share or misapply the number of shares. The accurate calculation, however, shows that Mr. Rogers' annual dividend totals $480, making this choice incorrect.

D (72000) YOUR ANSWER

The figure $72000 is vastly overestimated and likely results from a miscalculation or misunderstanding of the dividend formula. Given the dividend per share is $1.20, multiplying this by 400 shares cannot yield such a high total, confirming this choice as incorrect.

Conclusion

Mr. Rogers' dividend from owning 400 shares in Stark Industries amounts to $480, derived from the established dividend per share of $1.20. Each choice other than $480 reflects a miscalculation in understanding how dividends are distributed based on share ownership, reinforcing the importance of accurate arithmetic in financial contexts.

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?

Mr. Rogers receives $480 for an annual dividend.

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