A company announces a $.20/share dividend to common stockholders. There are 50,000,000 common stockholders. The next week the company announces layoffs of 500 workers earning on average of $40,000. What was the net gain or loss of money for the company when you compare the money saved from the layoff in comparison to the money distributed to common stockholders?

The company had a net gain of $10,000,000

Step-by-step explanation:

The money saved from the lay-off is the average wage of the workers multiplied by the number of workers

Mathematically, that will be;

500 * 40,000 = 20,000,000

Let’s now calculate the amount paid to the share holders

That will be the amount per share multiplied by the number of shares

Mathematically, that will be;

0.2 * 50,000,000 = $10,000,000

The net gain of the company will be the amount saved by laying off - the amount paid to shareholders of the company

That will be;

20,000,000- 10,000,000 = $10,000,000

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step-by-step explanation:

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