Problem:
The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired.
Required:
Question: What is the amount of cash dividends to be paid if a $2 per share dividend is declared?
- 60,000
- 20,000
- 120,000
- 100,000
Note: Please show the work not just the answer.