Name_______________________________________________________________ Acct 103 P.Jarret
Exam 4 Corporations, Bonds
- Spring 2011
If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share
would be $4.
If 50,000 shares are authorized, 37,000 shares are issued, and 2,000 shares are reacquired, the number of
outstanding shares is 39,000.
The par value of stock is an arbitrary per share amount defined in many states as legal capital.
When the board of director's declares a cash or stock dividend, this action decreases retained earnings.
If 20,000 shares are authorized, 14,000 shares are issued, and 500 shares are held as treasury stock, a
cash dividend of $1 per share would amount to $14,000.
The charter of a corporation provides for the issuance of 100,000 shares of common stock.
50,000 shares were originally issued and 5,000 were subsequently reacquired.
What is the amount of
cash dividends to be paid if a $1 per share dividend is declared?
Day Inc. has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par
value common stock outstanding at December 31, 2006. What is the annual dividend on the preferred