The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were origina

Question

2 years ago

15

lly issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared

1 answer:

artcher [175] · Answer 1 · 2023-01-15T23:25:15+03:00

The amount of cash dividends to be paid if a $2 per share dividend is declared is $80,000

Total number of shares issued

= 45,000

Shares reacquired

= 5,000

Total number of outstanding shares

= 45,000 - 5,000

= 40,000

Then,

Cash dividends to be paid

= Total number of outstanding shares * Share dividend declared

= 40,000 * $2

= $80,000

Therefore, the amount of cash dividends to be paid if a $2 per share dividend is declared is $80,000