The Bubba Corporation has 50,000 outstanding shares and holds 20,000 shares as treasury stock. At the end of the third quarter $450,000 is distributed as a dividend on the common. How much is the dividend per share?
A)$22.5
B)$9
C)$6.43
D)None of the above

Question

Quizplus · Accepted Answer

The dividend per share is $9. Since treasury stock does not receive dividends, divide $450,000 by the outstanding 50,000 shares to arrive at $9 per share.

The Bubba Corporation Has 50,000 Outstanding Shares and Holds 20,000