A company\'s board of directors votes to declare a cash dividend of $.90 per sha

Question

A company's board of directors votes to declare a cash dividend of $.90 per share of common stock. The company has 18,000 shares authorized, 13,000 issued, and 12,500 shares outstanding. The total amount of the cash dividend is:

A.) $11,700.

B.) $22,950.

C.) $15,200.

D.) $11,250.

E.) $16,200.

A company's board of directors votes to declare a cash dividend of $.90 per share of common stock. The company has 18,000 shares authorized, 13,000 issued, and 12,500 shares outstanding. The total amount of the cash dividend is:

Explanation / Answer

Dividend should be paid only for paid-up capital i.e., shares outstanding .

Therefore, total amount of cash dividend = 12,500 shares outstanding x $0.9 per share

                                                          = $11250

The answer ,is,therefore D-$11250.

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