If a company has 150 shares of common stock and $15,000.00 to be distributed to its holders, how much would each holder receive?
A. $150
B. $100
C. $125
D. $50
Answer (1)
Divide the total amount to be distributed by the number of shares.
Calculate the amount per share: 150 15000 = 100 .
Each shareholder receives $100 .
The final answer is $\boxed{ 100} .
Explanation
Understanding the Problem We are given that a company has 150 shares of common stock and $$15,000.00 to be distributed to its holders. We need to find out how much money each shareholder would receive if the money is distributed evenly.
Setting up the Calculation To find the amount each shareholder receives, we need to divide the total amount of money to be distributed by the total number of shares. Let A be the total amount of money, and N be the total number of shares. Then the amount each share receives, S , is given by the formula: S = N A
Performing the Calculation In this case, A = $15 , 000.00 and N = 150 . So we have: S = 150 15000 S = 100
Stating the Answer Therefore, each shareholder would receive $100.00 .
Examples
Imagine a company decides to distribute its profits to its shareholders. If the company has a profit of $15 , 000 and 150 shareholders, each shareholder would receive $100 . This calculation helps shareholders understand their return on investment and allows them to make informed decisions about their financial future. Understanding how profits are distributed can also encourage more people to invest in the company, leading to further growth and success.
