It is currently 19 Mar 2018, 11:13

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# A certain company expects quarterly earnings of \$0.80 per

 post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
Intern
Joined: 08 Nov 2008
Posts: 38
A certain company expects quarterly earnings of \$0.80 per [#permalink]

### Show Tags

08 Nov 2008, 20:46
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

A certain company expects quarterly earnings of \$0.80 per share of stock, half of which will be distributed as dividends to shareholders while the rest will be used for research and development. If earnings are greater than expected, shareholders will receive an additional \$0.04 per share for each additional \$0.10 of per share earnings. If quarterly earnings are \$1.10 per share, what will be the dividend paid to a person who owns 200 shares of the company’s stock?

A. \$92
B. \$96
C. \$104
D. \$120
E. \$240
Intern
Joined: 07 Nov 2008
Posts: 31
Re: shares--29 [#permalink]

### Show Tags

08 Nov 2008, 21:50
gorden wrote:
A certain company expects quarterly earnings of \$0.80 per share of stock, half of which will be distributed as dividends to shareholders while the rest will be used for research and development. If earnings are greater than expected, shareholders will receive an additional \$0.04 per share for each additional \$0.10 of per share earnings. If quarterly earnings are \$1.10 per share, what will be the dividend paid to a person who owns 200 shares of the company’s stock?

A. \$92
B. \$96
C. \$104
D. \$120
E. \$240

[(1.10-0.8)/0.10]0.04*200+0.4*200

C
Director
Joined: 14 Aug 2007
Posts: 704
Re: shares--29 [#permalink]

### Show Tags

08 Nov 2008, 22:27
0.4 * 200 = 80
+ 0.04 * 3 * 200 = 24
= 104
Re: shares--29   [#permalink] 08 Nov 2008, 22:27
Display posts from previous: Sort by

# A certain company expects quarterly earnings of \$0.80 per

 post reply Question banks Downloads My Bookmarks Reviews Important topics

Moderator: chetan2u

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.