Finra Exam Series-7 Topic 6 Question 89 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 89
Topic #: 6

The Bubba Corporation has 900,000 of common outstanding and holds 100,000 shares as treasury stock. At the end of the third quarter $450,000 is distributed as a dividend on the common.

How much is the dividend per share?

A$0.45

B$0.50

C$2.00

D$2.22

Show Suggested Answer

Suggested Answer: A

$0.45. Since treasury stock does not receive dividends, divide $450,000 by the outstanding 100,000 shares to arrive at $0.45 per share.

by Lacey at Jun 02, 2024, 11:45 PM

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Harrison

5 months ago

Bubba Corporation, huh? I bet their CEO's name is actually Bubba. Anyway, let's see... Dividend per share, dividend per share... Ah, got it! It's D) $2.22. Suck it, Bubba!

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Ashley

5 months ago

Hmm, this is a real head-scratcher. Good thing I brought my trusty calculator with me today. Okay, let me crunch the numbers one more time... Aha! It's B) $0.50 per share. Nailed it!

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Walton

5 months ago

Hold up, I'm getting a different answer here. Maybe I should've paid more attention in Accounting 101. Oh well, I'm just going to guess and hope for the best - C) $2.00 per share. Fingers crossed!

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Xuan

5 months ago

I'm going with D) $2.22

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Yasuko

5 months ago

I think the answer is A) $0.45

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Nguyet

6 months ago

Alright, time to put on my math hat. Let's see, $450,000 divided by 900,000 shares... Yup, option A is the winner! $0.45 per share, easy peasy.

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Ryan

5 months ago

Nice job, quick and simple calculation.

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King

5 months ago

That's correct! Easy math.

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Linwood

6 months ago

Option A) $0.45 per share

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Talia

6 months ago

I agree with Izetta, $0.50 makes sense because $450,000 divided by 900,000 shares is $0.50 per share.

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Izetta

6 months ago

I think the dividend per share is $0.50.

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Woah, this is a tricky one! Gotta remember to subtract the treasury shares from the outstanding ones. I'm leaning towards B - $0.50 per share. But I could be wrong, these dividend questions always mess with my head.

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Nguyet

5 months ago

I did the math too, and I also got B) $0.50 as the dividend per share. Looks like we're all in agreement.

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Douglass

6 months ago

I agree, it's easy to get confused with dividend calculations. B) $0.50 seems like the correct choice.

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Nan

6 months ago

I think you're on the right track, it's important to consider the treasury stock. I also believe the answer is B) $0.50.

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Jospeh

6 months ago

Okay, let's see here. 900,000 outstanding shares, 100,000 treasury shares, and $450,000 dividend. Hmm, I'm going with option A - $0.45 per share. Seems like the right calculation to me.

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Fausto

5 months ago

Yes, it looks like the correct calculation is $0.45 per share. Good job on figuring that out!

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Bobbie

5 months ago

I agree, the dividend per share should be $0.45 based on the information provided.

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Trinidad

5 months ago

Yeah, that makes sense with the numbers given.

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Leontine

5 months ago

I think you're right, option A - $0.45 per share makes sense with those numbers.

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Naomi

6 months ago

I think it's $0.45 per share.

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Carrol

6 months ago

Yes, that's correct. The dividend per share is $0.45.

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Romana

6 months ago

I think you're right, it should be $0.45 per share.

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Finra Exam Series-7 Topic 6 Question 89 Discussion

Contribute your Thoughts:

Harrison

Ashley

Walton

Xuan

Yasuko

Nguyet

Ryan

King

Linwood

Talia

Izetta

Sunny

Nguyet

Douglass

Nan

Jospeh

Fausto

Bobbie

Trinidad

Leontine

Naomi

Carrol

Romana