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:Group of answer choices$10,250.$14,625.$7,125.$7,500.$11,250.
Question
A company's board of directors votes to declare a cash dividend of 10,250.7,125.11,250.
Solution
The total amount of the cash dividend can be calculated by multiplying the dividend per share by the number of shares outstanding.
Here's how you do it:
- Identify the dividend per share: $.75
- Identify the number of shares outstanding: 9,500
- Multiply the dividend per share by the number of shares outstanding: $.75 * 9,500
This gives you a total cash dividend of 7,125.
Similar Questions
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