on January 1,20x1,A had 200,000 shares of $5 par value common stock outstanding. On January 15 declared a cash dividend of $0.5 a share
To calculate the cash dividend for common stock shareholders, you need to multiply the dividend per share by the number of shares.
Here are the steps to calculate the cash dividend:
Step 1: Determine the number of shares
In this case, company A had 200,000 shares of $5 par value common stock outstanding.
Step 2: Determine the dividend per share
On January 15, the company declared a cash dividend of $0.5 per share.
Step 3: Multiply the number of shares by the dividend per share
Multiply the number of shares (200,000) by the dividend per share ($0.5):
200,000 shares x $0.5 = $100,000
Therefore, the cash dividend for common stock shareholders would be $100,000.
To find the total amount of cash dividend that A declared on January 15th, we need to multiply the cash dividend per share by the number of shares outstanding.
Cash dividend per share: $0.5
Number of shares outstanding: 200,000
To find the total amount of cash dividend:
Total cash dividend = Cash dividend per share * Number of shares outstanding
Total cash dividend = $0.5 * 200,000
Therefore, A declared a total cash dividend of $100,000 on January 15th.