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the charter of a corporation provides for the issuance of 100,000 shares of common stock. assume that 40,000 shares were originally issued and 5,000 were subsequently reacquired. what is the amount of cash dividends to be paid if a $3 per share dividend is declared? a.$105,000 b.$15,000 c.$500,000 d.$120,000

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tutorconsortium115

The amount of cash dividends to be paid if a $3 per share dividend is $105,000.

What Is a Cash Dividend? 

Take

40,000 - 5,000 = 35,000

then multiply 35,000 by 3 to get $ 105,000.

cash dividend = 35000* 3 = 105,000

  • A cash dividend is a payment made from a company's current earnings or accumulated profits that is normally distributed to stockholders. Contrary to stock dividends or other forms of value, cash dividends are paid out in cash.
  • The board of directors must decide to pay a cash dividend, there must be enough cash on hand, and there must be enough retained earnings in order to do so.
  • Cash dividends are among the best forms of income from stocks if you want it on a regular basis.

To learn more about cash dividend refer to:

https://brainly.com/question/20374943

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