Rob owns stock in Dowc Beverage Co. and Agram Imports. He owns 86 more shares of Agram Imports, which pays a dividend of $5.15 p
2 answers:
Answer:
Number of shares owned by Rob in Agram Imports = 441
Explanation:
Let,
the number of shares owned in Agram = A
and
the number of shares owned in Dowc Beverage Co. = D
Where he owns 86 more shares of Agram Imports than he does of Dowc Beverage Co. then,
A = D + 86
when D is made the subject of the equation,
D = A - 86
Also, if Dowc Beverage Co. pays a dividend of $6.52 per share
Total payment from Dowc = $6.52D
Where Agram Imports pays a dividend of $5.15 per share,
Total payment from Agram Imports = $5.15A
Therefore, total payments received by Rob from both companies
= 6.52D + 5.15A
If Rob receives $4,585.15 in dividends annually then,
6.52D + 5.15A = 4,585.15
Recall that D = A - 86
substituting into the equation above'
6.52(A - 86) + 5.15 = 4585.15
6.52A - 560.72 + 5.15A = 4585.15
6.52A + 5.15A -560.72 = 4585.15
11.67A - 560.72 = 4585.15
Collecting like terms
11.67A = 4585.15 + 560.72
11.67A = 5145.87
Divide both sides by 11.67
A ≈ 441 Shares
As such, Number of shares owned by Rob in Agram Imports is 441
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