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;
Therefore, the amount of the dividend is $2,000,000 at a share price of $20 to be paid this year.
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