Question

Teslon Company paid a dividend of $2.89 per share to stockholders. They had 10,000 stocks issues and outstanding. Macy owned 2,000 of these shares. How much is the cash dividend to the remaining stockholders, not including Macy?

Answer 1

To calculate the cash dividend for the remaining stockholders after removing Macy's portion, we find the total dividend payout and then subtract Macy's share, resulting in a remaining dividend of $23,120 for the other stockholders.

Step-by-step explanation:

When Teslon Company paid a dividend of $2.89 per share to stockholders, and given that there are 10,000 shares issued and outstanding, the total dividend payout would be 10,000 shares × $2.89 per share, which equals $28,900. If Macy owned 2,000 of these shares, her portion of the dividend would be 2,000 × $2.89, totaling $5,780.

To find the amount of cash dividend for the remaining stockholders not including Macy, we subtract Macy's portion from the total payout. Thus, the cash dividend to the remaining stockholders would be $28,900 - $5,780, which equals $23,120.