Question

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $3-per-share dividend is declared?

Answer 1

take 40,000 - 5,000 = 35,000

then take 35,000 x 3 = $ 105,000

Step-by-step explanation: