It is currently 19 Oct 2017, 04:14

Close

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

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
Intern
avatar
Joined: 08 Nov 2008
Posts: 38

Kudos [?]: 32 [0], given: 0

A certain company expects quarterly earnings of $0.80 per [#permalink]

Show Tags

New post 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

Kudos [?]: 32 [0], given: 0

Intern
Intern
User avatar
Joined: 07 Nov 2008
Posts: 32

Kudos [?]: 13 [0], given: 0

Re: shares--29 [#permalink]

Show Tags

New post 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

Kudos [?]: 13 [0], given: 0

Director
Director
avatar
Joined: 14 Aug 2007
Posts: 726

Kudos [?]: 212 [0], given: 0

Re: shares--29 [#permalink]

Show Tags

New post 08 Nov 2008, 22:27
0.4 * 200 = 80
+ 0.04 * 3 * 200 = 24
= 104

Kudos [?]: 212 [0], given: 0

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  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

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®.