Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2018. In December, Handy announced $200,000 net income for 2018 and declared and paid a cash dividend of $2 per share on all 200,000 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2018 would be: Question 5 options: A) None of these answer choices are correct. B) $56,000. C) $28,000. D) $0.

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Business

Maya Harrington

20 February, 20:54

Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2018. In December, Handy announced $200,000 net income for 2018 and declared and paid a cash dividend of $2 per share on all 200,000 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2018 would be: Question 5 options: A) None of these answer choices are correct. B) $56,000. C) $28,000. D) $0.

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Answers (1)

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Smoke · Answer 1

B) $56,000

Explanation:

The computation of the dividend revenue is shown below:

= Number of shares purchased * dividend per share

= 28,000 shares * $2

= $56,000

We simply multiply the number of shares purchased with the dividend per share so that the accurate amount can come

All other information which is given is not relevant. Hence, ignored it