Netpass Company has 100,000 shares of common stock authorized, 90,000 shares issued, and 40,000 shares of treasury stock. The company’s board of directors declares a dividend of $0.85 per share of common stock. What is the total amount of the dividend that will be paid?

Netpass Company has 100,000 shares of common stock authorized, 90,000 shares issued, and 40,000 shares of treasury stock. The company’s board of directors declares a dividend of $0.85 per share of common stock. What is the total amount of the dividend that will be paid?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Definition Definition Stock repurchased from the stockholders by the company that once issued it. The repurchase of the stock reduces the stockholder's equity balance on the balance sheet. Treasury stocks are an important constituent of stockholder's equity but do not carry any voting rights.

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