The amount of dividends and dividend price per share comes out to be $2,000,000 and $20 when the number of shares is assumed to be 100,000.
<h3>What are dividends?</h3>
Dividends are the amounts allocated to share investors by the company up to their shareholdings. It is the amount that is first provided to preferred stock investors.
Given values:
Expected profits: $4,00,000
Increase in Retained earnings: $2,000,000
The number of shares is assumed to be 100,000.
Computation of dividend per share;
![\rm\ Dividend \rm\ per \rm\ share=\frac{\rm\ Expected Profits-\rm\ Increase \rm\ in \rm\ Retained \rm\ Earnings}{Number of shares} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$4,00,000-\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\$20](https://tex.z-dn.net/?f=%5Crm%5C%20Dividend%20%5Crm%5C%20per%20%5Crm%5C%20share%3D%5Cfrac%7B%5Crm%5C%20Expected%20Profits-%5Crm%5C%20Increase%20%5Crm%5C%20in%20%5Crm%5C%20Retained%20%5Crm%5C%20Earnings%7D%7BNumber%20of%20shares%7D%20%5C%5C%5Crm%5C%20Dividend%20%5Crm%5C%20per%20%5Crm%5C%20share%3D%5Cfrac%7B%5C%244%2C00%2C000-%5C%242%2C000%2C000%7D%7B100%2C000%7D%20%5C%5C%5Crm%5C%20Dividend%20%5Crm%5C%20per%20%5Crm%5C%20share%3D%5Cfrac%7B%5C%242%2C000%2C000%7D%7B100%2C000%7D%20%5C%5C%5Crm%5C%20Dividend%20%5Crm%5C%20per%20%5Crm%5C%20share%3D%5C%2420)
Therefore, the amount of the dividend is $2,000,000 at a share price of $20 to be paid this year.
Learn more about the dividends in the related link:
brainly.com/question/14171490
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