A company's board of directors votes to declare a cash dividend of $0.75 per share.The company has 15,000 shares authorized,10,000 issued,and 9,500 shares outstanding.The total amount of the cash dividend is:
A)$375
B)$4,125
C)$7,125
D)$7,500
E)$11,250

Question

Quizplus · Accepted Answer

The total amount of the cash dividend can be calculated by multiplying the dividend per share by the number of outstanding shares. 
Dividend amount = $0.75 x 9,500 = $7,125. 
Therefore, the correct answer is (C) $7,125.

A Company's Board of Directors Votes to Declare a Cash