The board of directors has the responsibility to determine the dollar amount of dividends to be given

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The board of directors has the responsibility to determine the dollar amount of dividends to be given to investors. As a group of three or four students acting as the board of directors, determine the amount of dividends to declare for your investors given the following information: (1) 100,000 shares outstanding, (2) $249,000 in net income, (3) $1,500,000 proposed future expansion, (4) $900,000 balance in Retained Earnings. Should the board approve a dividend in stock, cash, or a combination of both? Justify your answer.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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College Accounting Chapters 1-30

ISBN: 978-0077862398

14th edition

Authors: John Price, M. David Haddock, Michael Farina

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