Olala Company has the following shareholders’ equity: Common stock (700,000 shares at $700 per-share) $ ........................ Paid-in-capital in excess of par $140,000,000 Retained Earnings $70,000,000 Required: How much is the total shareholders’ equity of Olala Company? How much maximum per-share-dividend could Olala Company pay?

Olala Company has the following shareholders’ equity: Common stock (700,000 shares at $700 per-share) $ ........................ Paid-in-capital in excess of par $140,000,000 Retained Earnings $70,000,000 Required: How much is the total shareholders’ equity of Olala Company? How much maximum per-share-dividend could Olala Company pay?

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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Required:

How much is the total shareholders’ equity of Olala Company?
How much maximum per-share-dividend could Olala Company pay?

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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