Final answer:
The cash dividends to be paid after a $2-per-share dividend is declared on common stock, with 37,345 shares issued and 4,061 shares reacquired, is $66,568. This figure is calculated using the number of eligible shares (33,284) after reacquired shares are subtracted from total issued shares.
Step-by-step explanation:
The student's question pertains to the calculation of cash dividends to be paid when a corporation declares a dividend on its common stock. If the corporation has authorized 100,640 shares, issued 37,345 shares, and reacquired 4,061 shares, the amount of shares eligible for dividends is the issued shares minus the reacquired shares. When a $2-per-share dividend is declared, the cash dividends are calculated by multiplying the dividend per share by the number of eligible shares.
First, we calculate the total eligible shares:
- Total issued shares: 37,345
- Less: Reacquired shares: 4,061
- Eligible shares for dividend: 37,345 - 4,061 = 33,284 shares
Next, we determine the total cash dividends to be paid:
Total dividends = Dividend per share x Eligible shares for dividend
Total dividends = $2 x 33,284 shares = $66,568
Therefore, the corporation will pay a total of $66,568 in cash dividends to its shareholders.