Zwick Company bought 27,500 shares of the voting common stock of Handy Corporati

Question

Zwick Company bought 27,500 shares of the voting common stock of Handy Corporation in January 2013. In December, Handy announced $206,600 net income for 2013 and declared and paid a cash dividend of $8 per share on the 201,000 shares of outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2013 would be:

Zwick Company bought 27,500 shares of the voting common stock of Handy Corporation in January 2013. In December, Handy announced $206,600 net income for 2013 and declared and paid a cash dividend of $8 per share on the 201,000 shares of outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2013 would be:

Explanation / Answer

Hi,

Please find the detailed answer as follows:

Option C (220000) is the correct answer.

Explanation:

Value of Dividend Revenue from Handy Corporation = Number of Shares*Cash Dividend = 27500*8 = 220000

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse Z
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.