Answered: The cash dividend is paid based on the…

The cash dividend is paid based on the number of shares: a. On circulation b. Authorized c. Outstanding minus the number of shares in the portfolio d. Issued

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 15GI

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

The cash dividend is paid based on the number of shares:

a. On circulation

b. Authorized

c. Outstanding minus the number of shares in the portfolio

d. Issued

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