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    Treasury Stock and Dividends

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    5,000 shares of common stock, assume that 2,000 shares were origionally issued and 800 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

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    Solution Preview

    Number of shares outstanding = 2,000 - 800 = 1,200 ...

    Solution Summary

    The solutions shows the calculations of the dividend per share.