Question

Cole Company has 302,000 shares of common stock authorized, 260,000 shares issued, and 64,000 shares of treasury stock. The companys board of directors has declared a dividend of 82 cents per share. What is the total amount of the dividend that will be paid?

Answer 1

The total dividend payment Cole Company will make is $160,720, which is calculated by subtracting the treasury stock from issued shares, resulting in 196,000 shares, and then multiplying by the dividend of 82 cents per share.

Step-by-step explanation:

The total amount of the dividend that Cole Company will pay can be calculated by taking the number of shares issued and subtracting the treasury stock, which is not entitled to receive dividends. Then, you multiply the resulting number of shares by the dividend per share. In this case, Cole Company has issued 260,000 shares and has 64,000 shares of treasury stock. The dividend declared is 82 cents per share.

First, calculate the number of shares entitled to receive dividends:

• Shares issued: 260,000
• Treasury stock: 64,000
• 260,000 - 64,000 = 196,000 shares

Next, calculate the total dividend payment:

• Dividend per share: $0.82
• Total dividend = Number of shares x Dividend per share = 196,000 x $0.82
• Total dividend = $160,720

Therefore, the total dividend payment Cole Company will make is $160,720.