Nick owns 500 of the 100,000 shares available.

A) what percentage of the company does Nick own?

B) the company earns $2,500,000, how much of these earnings is Nick entitled to?

To get the percentage of how much Nick owns, we have to divide the part (500) by the whole (100,000) then multiply the product by 100.

500 / 100,000 = 0.005

0.005 × 100 = .5%

Nick is entitled to $2,500,000 × .5% = $12,500