The charter of a corporation provides for the issuance of 98,602 shares of common stock. Assume...

The charter of a corporation provides for the issuance of 98,602 shares of common stock. Assume that 39,835 shares were originally issued and 4,383 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

Expert Solution

Woking Notes:

	Authorized Shares	98,602	Shares

	Issued Shares	39,835	Shares

	Shares Reacquired	4,383	Shares

	Shares Issued and outstanding = 39,835 Shares - 4,383 Shares =	35,452	Shares

	Cash Dividend is declared and paid only on the shares issued and outstanding

	So we can pay the dividend on 35,452 shares only

SOLUTION:

	CALCULATION OF CASH DIVIDEND TO BE PAID IF $ 2 PER SHARES IS DECLARED

	Shares Issued and outstanding =	35,452	Shares

	Multiply By	"X" By

	Dividend Per Shares	$ 2.00	Per Shares

	Total Cash Dividend to be paid	$ 70,904


	Answer = Total Cash Dividend paid = $ 70,904

ekkarill92 answered 2 years ago

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