Understanding Share Distribution and Profit Allocation

The video tutorial explains how stock shares represent ownership in a company, using Puff Incorporated as an example. It details the shares owned by Peter, Paul, and Mary, and calculates the total shares. The tutorial then focuses on determining the profit share Mary receives based on her ownership percentage. Using a calculator, it demonstrates the calculation process, resulting in Mary's final profit amount from the company's total profit of $1,500,000.

Who are the owners of Puff Incorporated?

• Paul, Mary, and John

• Peter, John, and Mary

• John, Paul, and George

• Peter, Paul, and Mary

How many shares does Mary own?

• 3,500

• 4,200

• 2,510

• 4,050

What is the total number of shares in Puff Incorporated?

• 10,760

• 11,760

• 12,760

• 13,760

What fraction of the total shares does Mary own?

• 0.50

• 0.25

• 0.39

• 0.45

What percentage of the profit is Mary entitled to?

• 25%

• 39%

• 50%

• 45%

What is the total profit made by the company?

• $1,000,000

• $1,200,000

• $1,500,000

• $1,800,000

How much profit does Mary receive approximately?

• $500,000

• $550,000

• $585,501.86

• $600,000

What is the exact value used to calculate Mary's profit?

• 0.390

• 0.392

• 0.390334

• 0.391

What is the significance of the squiggly equal sign in the calculation?

• It indicates a subtraction

• It indicates an exact value

• It indicates an approximation

• It indicates a multiplication

What can be inferred about Mary's financial situation from her dividends?

• She will struggle financially

• She will have to sell her shares

• She will need additional income

• She will live comfortably