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Finra Series-7 Exam - Topic 2 Question 96 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 96
Topic #: 2
[All Series-7 Questions]

The Bubba Corporation has 900,000 of common outstanding and holds 100,000 shares as treasury stock. At the end of the third quarter $450,000 is distributed as a dividend on the common.

How much is the dividend per share?

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Suggested Answer: A

$0.45. Since treasury stock does not receive dividends, divide $450,000 by the outstanding 100,000 shares to arrive at $0.45 per share.


by Johnna at Sep 09, 2024, 08:45 PM

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Tonja
4 months ago
Wait, are we sure about those numbers? Sounds off to me.
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Corrie
5 months ago
Nope, it’s actually $0.5625 per share.
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Diane
5 months ago
I think that comes out to $0.56 per share, right?
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Tashia
5 months ago
So, that means $450,000 divided by 800,000 shares?
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Keith
5 months ago
There are 800,000 shares eligible for dividends.
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Gail
6 months ago
I’m a bit lost on how to approach this. Should we just divide the total dividend by the outstanding shares?
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Claribel
6 months ago
If I recall correctly, the outstanding shares should be 800,000 after accounting for the treasury stock. That might help with the math.
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Frederica
6 months ago
I remember a similar question where we had to divide total dividends by the number of outstanding shares, but I’m not sure if I did it correctly.
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Ma
6 months ago
I think we need to subtract the treasury stock from the total shares before calculating the dividend per share, right?
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Lura
6 months ago
I think I've got the right approach here. The key is to use the 800,000 outstanding shares after subtracting the treasury stock. Then it's just a matter of dividing the $450,000 dividend by 800,000 shares. That gives us $0.5625 per share, so the answer is B.
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Yoko
6 months ago
Wait, I'm confused. Why are we subtracting the treasury stock from the total outstanding shares? Shouldn't we just be dividing the $450,000 dividend by the 900,000 total outstanding shares? That would make the dividend per share $0.50. I'm not sure about this one.
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Daryl
6 months ago
Okay, I've got this. The total outstanding shares is 900,000 - 100,000 = 800,000. And the total dividend amount is $450,000. So the dividend per share is $450,000 / 800,000 = $0.5625. The answer is B.
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Karrie
6 months ago
Hmm, this one seems tricky. I'm not sure if I'm supposed to use the total outstanding shares or just the 900,000 common shares. And I'm not clear on how the treasury stock factors in. I'll have to re-read the question carefully and work through the math step-by-step to make sure I get this right.
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Dawne
6 months ago
Okay, let's think this through step-by-step. The total number of outstanding shares is 900,000 - 100,000 = 800,000. And the total dividend amount is $450,000. So the dividend per share should be $450,000 / 800,000 = $0.5625 per share. I think the answer is B.
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Romana
6 months ago
This one seems pretty straightforward. I'm pretty confident the answer is D - income statement.
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Rodolfo
6 months ago
I remember there was something about CRES in our practice exams, so option C could be the right choice.
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Stephanie
2 years ago
Well, butter my biscuit and call me a genius! The correct answer is A) $0.45 per share. Y'all need to brush up on your basic arithmetic, that's for sure.
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Leontine
2 years ago
Hold on now, ain't nobody got time for all that fancy math. I'm goin' with C) $2.00 per share. Why? 'Cause it's a nice round number, that's why!
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Nichelle
1 year ago
I'm sticking with C) $2.00, it just feels right to me.
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Blossom
1 year ago
I'm not sure about that, I think it might be B) $0.50 instead.
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Xochitl
1 year ago
I agree with you, A) $0.45 seems like the most reasonable option.
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Stephane
1 year ago
I think you might be overestimating the dividend per share. I'm going with A) $0.45.
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Erasmo
2 years ago
I'm not sure, but I think it might be $0.45 instead.
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Niesha
2 years ago
I agree with Chau, $0.50 makes sense because $450,000 divided by 900,000 shares is $0.50.
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Chau
2 years ago
I think the dividend per share is $0.50.
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Josephine
2 years ago
Alright, time to crunch some numbers. Divide the $450,000 dividend by the 900,000 shares outstanding, and you get... D) $2.22 per share. Easy peasy, lemon squeezy!
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Timothy
2 years ago
Hmm, let's see here... 900,000 shares outstanding, 100,000 as treasury stock, and $450,000 dividend. I'm thinkin' B) $0.50 is the way to go. Simple math, y'all!
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Dominga
2 years ago
Yep, it's simple division. $450,000 divided by 900,000 shares gives $0.50 per share.
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Sharan
2 years ago
I agree with you, B) $0.50 sounds right to me too.
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