Plymouth Corporation has only one class of stock. There are 84, 000 shares outstanding. During 20X1, the corporation's net income after taxes was $672,000. The policy of the corporation is to declare dividends equal to 20 percent of its net income. Elaine White owns 290 shares of the stock. How much will White receive as a dividend on these shares?

Plymouth Corporation has only one class of stock. There are 84, 000 shares outstanding. During 20X1, the corporation's net income after taxes was $672,000. The policy of the corporation is to declare dividends equal to 20 percent of its net income. Elaine White owns 290 shares of the stock. How much will White receive as a dividend on these shares?

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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my professor said the answer is nothing can someone explain why.
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