Buskin's Corporation has issued 2 million shares of stock.Its earnings were $10 million,of which it retained 40 percent.What was the dividend per share?
A)$2.
B)$3.
C)$5.
D)$8.

Question

Quizplus · Accepted Answer

If Buskin's Corporation retained 40% of its earnings, it distributed 60% as dividends. 
Total dividend distributed = 0.6 x $10,000,000 = $6,000,000 
Dividend per share = Total dividend distributed/Number of shares = $6,000,000/2,000,000 = $3. Therefore, the answer is B.

Buskin's Corporation Has Issued 2 Million Shares of Stock