Wren's investment manager informed her that she has a dividend yield of 6 from her investment with AB PLC. If the shares of the company currently trade for $20 on the Stock Exchange, what is the total dividend Wren receives if she has 2000 shares in AB PLC?
$40000
$12000
$1200
$2400
$2400
$20 * .06 * 2000
To calculate the total dividend Wren receives, you need to multiply the dividend yield by the number of shares she has.
Dividend Yield = 6%
Number of Shares = 2000
Step 1: Calculate the dividend amount per share:
Dividend Yield = 6% = 0.06
Dividend per Share = $20 * 0.06 = $1.20
Step 2: Calculate the total dividend:
Total Dividend = Dividend per Share * Number of Shares
Total Dividend = $1.20 * 2000 = $2400
Therefore, the total dividend Wren receives if she has 2000 shares in AB PLC is $2400.
To calculate the total dividend Wren receives, you need to multiply the dividend yield by the number of shares she has.
Dividend Yield = Dividend per Share / Share Price
Given that the dividend yield is 6 and the share price is $20, we can rearrange the formula to find the dividend per share:
Dividend per Share = Dividend Yield * Share Price
Plugging in the values, we have:
Dividend per Share = 6 * $20 = $120
To find the total dividend Wren receives, we multiply the dividend per share by the number of shares she has:
Total Dividend = Dividend per Share * Number of Shares
Plugging in the values, we have:
Total Dividend = $120 * 2000 = $240,000
Therefore, the total dividend Wren receives if she has 2000 shares in AB PLC is $2400.