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Shiloh industries Retained earnings $497000 on the balance sheet $197000 of net income during the year Previous years balance sheet reported $445000 of retained earnings No shares were purchased or issued during the year If the company has $100000 shares outstanding what was their dividend per share?

Shiloh industries Retained earnings $497000 on the balance sheet $197000 of net income during the year Previous years balance sheet reported $445000 of retained earnings No shares were purchased or issued during the year If the company has $100000 shares outstanding what was their dividend per share?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Shiloh industries Retained earnings $497000 on the balance sheet $197000 of net income during the year Previous years balance sheet reported $445000 of retained earnings No shares were purchased or issued during the year If the company has $100000 shares outstanding what was their dividend per share?
Expert Solution
Step 1: Calculate dividend paid

Beginning retained earnings = $445,000

Ending retained earnings = $497,000

Net Income = $197,000


The addition to retained earnings is 

table row cell A d d i t i o n space t o space r e t a i n e d space e a r n i n g s end cell equals cell E n d i n g space r e t a i n e d space e a r n i n g s minus B e g i n n i n g space r e t a i n e d space e a r n i n g s end cell row blank equals cell $ 497 comma 000 minus $ 445 comma 000 end cell row blank equals cell $ 52 comma 000 end cell end table

The amount of dividend paid during the year was

table row cell D i v i d e n d s space p a i d end cell equals cell N e t space i n c o m e minus A d d i t i o n space t o space r e t a i n e d space e a r n i n g s end cell row blank equals cell $ 197 comma 000 minus $ 52 comma 000 end cell row blank equals cell $ 145 comma 000 end cell end table


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