On December 31, Year 1, Delta issues 1 million shares of common stock to equity investors in exchange for $50 million in cash. Delta traditionally declares and pays an annual dividend of $2 per share during November (the next dividend will be declared and paid during November Year 2). How much of a liability will Delta record on December 31, Year 1, related to the share issuance?

Answer rating: 100% (QA)

When Delta issues 1 million shares of common stock to equity investors in exchange f... View the full answer