@sinusoidal @calculusxy

Suppose you own 125 shares of Wal-Mart, which pay a dividend of $0.30 per share per year. How much will you receive in dividends over 5 years, assuming the dividends stay the same and you buy no more stock?

A. $187.50
B. $112.50
C. $37.50
D. $225.00

Question

@sinusoidal @calculusxy 

Suppose you own 125 shares of Wal-Mart, which pay a dividend of $0.30 per share per year. How much will you receive in dividends over 5 years, assuming the dividends stay the same and you buy no more stock?

 		A.	$187.50
 		B.	$112.50
 		C.	$37.50
 		D.	$225.00

calculusxy · Answer

What was your answer?

anonymous · Answer

i have to multiply the share and price right?

anonymous · Answer

You start with 125 shares of Walmart. They pay you $.30 per share per year. They pay you X= (125*.30) every year

anonymous · Answer

37.5

calculusxy · Answer

I think that you are right because $0.30*125=$37.50

anonymous · Answer

WRONG ITS $187.50

whpalmer4 · Answer

As @sjohnson4772 so helpfully explained (uh, well, maybe not), the key to getting the answer correct is noticing that the problem asks for the amount you will be paid in dividends OVER 5 YEARS.  $37.50 is the correct amount of dividends paid per year, but you need to multiply by the number of years to get the answer requested by the problem.