On January 1, 2012, Oldroyd Corporation had 150,000 shares of common stock issued and outstanding. During 2012,

Question:

On January 1, 2012, Oldroyd had 150,000 shares of issued and outstanding. During 2012, the following transactions occurred (in chronological order):
a. Oldroyd issued 25,000 new shares of .
b. The company reacquired 10,000 shares of stock for use in its employee stock option plan.
c. At the end of the option period, 2,500 shares of treasury stock had been purchased by corporate officials.
Given this information, compute the following:
1. After the foregoing three transactions have occurred, what amount of dividends must Oldroyd declare in order to pay 50 cents per share? To pay $ 1 per share?
2. What is the per share if $251,250 is paid?
3. If 5,000 treasury shares had been purchased by corporate officials through the stock option plan, what would the dividends per share have been, again assuming $251,250 in dividends were paid?

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