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Elina [12.6K]
3 years ago
10

Ennis, Inc. has 35,000 common shares issued at a $2.25 par value of which 22,000 are outstanding. If Ennis has no other outstand

ing stock, what size dividend must be paid such that each share receives $3.20
Business
1 answer:
user100 [1]3 years ago
5 0

Answer:

$70,400

Explanation:

The company has:

Number of Shares = 35,000

Par value = $2.25

Outstanding = 22,000

The question requires that we find the size of dividend that must be paid if each share receives $3.20:

Only Outstanding shares are included in dividends contribution.

So to pay 22,000 shares at $3.20

= 22,000 x $3.20

= $70,400

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