As the company has to pay out this money the share price drops accordingly, from $10 to $9.90, so the investor with 10 shares now has $99 + 85¢ dividend, or $99.85.
Because the company must distribute this sum, the stock price drops, falling from $10 to $9.90. An investor holding 10 shares now earns a dividend of $99 plus 85 cents, amounting to $99.85.