Question

1. james wants to use his dividends to buy more stock. he owns 760 shares in a soda manufacturer that are priced at $48.36. how many shares can he afford to purchase if he earns a dividend of $1.22 per share? round to the next lowest share.

114 shares
927 shares
19 shares
48 shares.

Explanation:

Step1: Calculate total dividend

Total dividend = number of shares × dividend per share = \( 760 \times 1.22 \)
\( 760 \times 1.22 = 927.2 \)

Step2: Calculate number of shares affordable

Number of shares = total dividend ÷ price per share = \( 927.2 \div 48.36 \)
\( 927.2 \div 48.36 \approx 19.17 \)

Step3: Round to next lowest share

Since we need to round to the next lowest share, we take the integer part, which is 19.

Answer:

C. 19 shares