ACTIVITY 2E: DIVIDEND HAPPY
Description
Students calculate dividend payments given the number of shares and the dividend amount per share.
Students write two problems of their own.
Math Objectives
The student will be able to:
• Multiply a decimal by a whole number
• Use a formula to solve a problem
• Write word problems
• Round decimals to the nearest hundredth
Stock Market Concepts
Dividends
Connections and Extensions
Math: Students write their own problems involving dividends and exchange with a classmate. Students work and then check each other’s problems.
Math/Personal Finance: Students write checks to the person named in the problems for the amount of the dividend payment using the sample checks provided in the Appendix.
Writing: Students respond to the prompt, “Would you rather invest in a company that regularly pays dividends? Why or why not?”
ACTIVITY
Companies sometimes share their profits with investors in the form of dividends. Most stock tables will list the amount of a company’s dividends. Use the formula below to determine the payment in each situation below.
Dividend Payment = Number of Shares x Dividend Amount per Share
1. Carol has 3,250 shares of a stock that is paying a dividend of $0.75 per share.
2. Rich owns 1,375 shares of More Money, Inc stock. Their dividend amount per share is $0.38.
3. Betsy was given 450 shares of a stock paying a dividend of $1.44 per share.
4. $0.15 per share is being paid in dividends to owners of Pretty Pens Company (INK). Roberto owns 3,422 shares of INK stock.
5. Snail Landscaping Corp. (SLOW) shareholders are receiving $0.97 per share in dividends. How much will Sean receive if he owns 980 shares?
6. Heather owns 688 shares of Putter’s Golfing Equipment (PAR) stock. PAR is paying dividends of $0.74 per share.
7. Ashley just learned that School Supplies, Inc. is paying a dividend of $0.26 per share. She owns 2,185 shares. How much will her dividend payment total?
8. United Bubblegum Company is paying dividends of $1.27 per share. If you owned 350 shares, how much will your dividend payment total?
9. Write two dividend word problems. Include the complete solution.
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