Navarro Company has 200,000 shares authorized, 150,000 shares issued, and 25,000 shares of Treasury stock on January 1, 2019. On March 1, they declared a 15% stock dividend. The company then declared a $2.10 per share cash dividend.
What is the amount of dividends payable?

Question

Quizplus · Accepted Answer

125,000 shares outstanding x 1.15% =143,750 shares outstanding as of March 1, 2019
143,750 shares x $2.10 dividend / share = $301,875

Navarro Company Has 200,000 Shares Authorized, 150,000 Shares Issued, and 25,000