Question

The charter of a corporation provides for the issuance of 115,873 shares of common stock. Assume that 37,721 shares were originally issued and 3,277 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

Answer 1

$68,888

Step-by-step explanation:

The Dividend are paid base on outstanding shares

Dividend paid = (37,721 - 3,277 shares) * $2

Dividend paid = 34,444 shares * $2

Dividend paid = $68,888

So, the amount of cash dividends to be paid is $68,888