P12-1Dividend Payment Procedure: At the quarterly dividend meeting, Wood Shoes declared a cash dividend of $ 1.10 per share for record holders on Monday, July 10. The company has 300,000 common shares outstanding and has set a July 31 payment date. Before it declared dividends, the company's main accounts were as follows:Cash $ 500,000Dividends payable 0Retained earnings $ 2,500,000Show the games at the end of the meeting.When is the ex-dividend date?What values will the main accounts have after the July 31 date?What cash, if any, will the dividend produce on the company's total assets?If we ignore general market fluctuations, what effect, if any, will the dividend have on the company's stock price on the ex-dividend date?

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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P12-1

Dividend Payment Procedure: At the quarterly dividend meeting, Wood Shoes declared a cash dividend of $ 1.10 per share for record holders on Monday, July 10. The company has 300,000 common shares outstanding and has set a July 31 payment date. Before it declared dividends, the company's main accounts were as follows:

Cash $ 500,000

Dividends payable 0

Retained earnings $ 2,500,000

Show the games at the end of the meeting.
When is the ex-dividend date?
What values will the main accounts have after the July 31 date?
What cash, if any, will the dividend produce on the company's total assets?
If we ignore general market fluctuations, what effect, if any, will the dividend have on the company's stock price on the ex-dividend date?

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