David received \( \$ 8.75 \) in dividends on 25 shares of stock. How much should Maria receive if in dividends if she has 60 of the same stock?

To find out how much Maria should receive in dividends, we first determine the dividend per share based on David's information. David received \( \$ 8.75 \) for 25 shares, so the dividend per share is: \[ \frac{8.75}{25} = 0.35 \] Now, to find out Maria's total dividends for her 60 shares, we multiply the dividend per share by the number of shares she owns: \[ 0.35 \times 60 = 21 \] Maria should receive \( \$ 21.00 \) in dividends. But wait! Have you ever thought about how dividends actually affect stock prices? Typically, when dividends are announced, they can influence the demand for the stock. If investors anticipate a solid dividend payout, they might rush to buy shares, potentially driving the price up. However, after the dividends are paid, the stock price might dip as investors sell off their shares. It’s a wild world out there in the stock market! Speaking of dividends, many investors often forget to consider the tax implications of these payments. In several jurisdictions, dividends may be subject to taxation, which can impact the actual amount received. It’s crucial to factor in these taxes into your investment planning to have a clearer picture of your net earnings!