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A company's board of directors votes to declare a cash dividend of $1.30 per share of common stock. The company has 26,000 shares authorized, 21,000 issued, and 20,500 shares outstanding. The total amount of the cash dividend is:

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The cumulative cash dividend will be paid out to shareholders in the amount of 26,650 (20,500*1.30).

What do you mean by dividend?

A corporation's payout of profits to its shareholders is known as a dividend. When a business generates a profit or surplus, it is able to distribute a portion of that profit to shareholders in the form of a dividend.

Any remaining funds are seized and reinvested in the company (called retained earnings).

Given :

Authorized shares=26,000

Issued=21,000

Outstanding shares=20,500

Cash divided rate=$1.30

Thus, the total cash dividend will be Shares issued multiplied by the rate of dividend.

=20,500*1.30

=26,650

Hence, the final cash dividend will be 26,650

Learn more about cash dividends:

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