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    Dividend Issue and Outstanding Shares

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    The balance sheet caption for common stock is:

    Common stock, $10 par value, 7,000,000 shares authorized, 5,700,000 shares issued, 5,500,000 shares outstanding.

    (1.) Calculate the dollar amount that will be presented opposite of this caption.
    (2.) Calculate total amount of a cash dividend of $1.00 per share.
    (3.) What accounts for the difference between issued shares and outstanding shares?

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    https://brainmass.com/business/accounting-for-corporations/dividend-issue-outstanding-shares-240956

    Solution Preview

    (1.) Calculate the dollar amount that will be presented opposite of this caption.

    The dollar amount would be the number of shares issued X par value = 5,700,000X10=$57 million. Once the shares are issued, the cash is received by the firm and ...

    Solution Summary

    The solution explains how to calculate the amount of dividend and the difference between issued and outstanding shares.

    $2.19