Question

STATEMENT OF STOCKHOLDERS’ EQUITY In its most recent financial statements, Newhouse Inc. reported $50 million of net income and $810 million of retained earnings. The previous retained earnings were $780 million. Newhouse has 10 million shares outstanding. a. How much in dividends were paid to shareholders during the year

Answer 1

The Company paid usd 2 per share.

Step-by-step explanation:

Initial Retained Earnings: $ 780 mill.

Current Net Income : $ 50 mill.

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Subtotal : $ 830 mill.

Actual Retained Earnings : $ 810 mill.

The difference of $ 20 mill. was the dividends paid to shareholders, if were 10 million of share outstanding, it means usd 2/Share.