Identifying and Analyzing Financial Statement Effects of Cash Dividends On its F

Question

Identifying and Analyzing Financial Statement Effects of Cash Dividends
On its Form 10-K for the year ended December 31, 2015, Bank of America Corp. reported the following relating to dividends on its Series 5 Floating Rate Non-Cumulative Preferred stock.

There were 14,058 million shares of this preferred stock outstanding throughout the year. Determine the total dividends that Bank of America paid during fiscal 2015.

Round answer to the nearest million.

Dividend Payment Date Dividend Per Share 22-Feb-16 0.27779 23-Nov-15 0.27779 21-Aug-15 0.27779 21-May-15 0.26945 23-Feb-15 0.27779

Explanation / Answer

Total dividend per share paid in fiscal 2015:

Total amount of dividends = sum of all dividends per share for 2015*no. of shares

= 1.10282*14,058 million

= $15,503.44356 million.

This will be rounded off to the nearest million i.e. $15,503 million

Date Dividend per share 23-Feb-15 0.27779 21-May-15 0.26945 21-Aug-15 0.27779 23-Nov-15 0.27779 Total 1.10282

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