Question

A company's board of directors votes to declare a cash dividend of $.75 per share of common stock. The company has 15,000 shares authorized, 10,000 issued, and 9,500 shares outstanding.

The total amount of the cash dividend is:
A) $7,125.
B) $11,250.
C) $10,250.
D) $7,500.
E) $14,625.

Answer 1

A is the answer $7,125 if I’m reading correctly

Answer 2

$7,500

Step-by-step explanation:

Total amount of cash dividend = cash dividend X amount of shares issued

= $0.75 X 10,000 = $7,500