A certain stock pays dividends of $0.79 per share. How much would you receive if you owned 60 shares? Round your answer to the nearest cent if necessary.

Step-by-step solution

1. 1

   Identify what the quoted dividend actually means. A dividend quoted as \0.79$ is a per-share rate, not a total. Every share you hold earns that same amount, so the payout scales linearly with the number of shares — that is the only modelling decision in the problem.

2. 2

   Write the payout as a product. With $D$ the dividend per share and $n$ the number of shares:

   $\text{Total} = D \times n = 0.79 \times 60$

3. 3

   Multiply. Compute $79 \times 60 = 4740$ in cents, then place the decimal point two digits from the right:

   $0.79 \times 60 = 47.40$

4. 4

   Check the rounding instruction. The product already lands on a whole number of cents, \47.40$, so no rounding is needed. Keep the trailing zero anyway — currency is conventionally written to two decimal places.

5. 5

   Sanity-check the size of the answer. The dividend is just under \0.80$, so 60 shares should pay a little under$60 \times 0.80 = $48$. The answer$$47.40$ sits just below that ceiling, as expected.