Philagen Inc., ended 2012 with net profit before taxes of $211,000.00. The company is subject to a 40% tax rate and must pay $30, 600.00 in preferred stock dividends before distributing any earning on the $80,000.00 shares of common stock currently outstanding.
If the firm paid common stock dividend of .82 per share, how many dollars would go to retained earnings?© BrainMass Inc. brainmass.com October 10, 2019, 4:05 am ad1c9bdddf
Total dividend paid = 0.82*80000 = $65,600
The solution computes Common stock dividends and retained earnings with the given data.