Find Outstanding shares per entry: January 1: Siegel Company\'s balance sheet re

Question

Find Outstanding shares per entry: January 1: Siegel Company's balance sheet reveals that it is authorized to sell 825,000 shares of stock; 657,000 shares are issued and outstanding. May 3: Siegel issued an additional 22,000 shares of stock. November 12: Siegel Company's board of directors declared a dividend of $1,861,200 to be paid on December 15 to shareholders on record on December 3. December 1: Siegel purchased 30,000 shares of its own stock to be available for employee purchase. December 3: Siegel gathered the necessary data for all outstanding stockholders as of this date. December 14: Siegel Company sold 27,800 of its shares of treasury stock. December 15: Siegel paid the $1,861,200 dividend. Calculate the dividend per share to be paid to each common stockholder, rounded to the nearest cent. $ = $ per share shares Now, assume that the December 1 and December 14 transactions did not occur. Calculate the dividend per share in this case. $ = $ per share shares

Explanation / Answer

total shares sold = 657000 + 22000 -30000 + 27800 = 676800 dividend per share = 1861200/676800 = $2.75 Now assume transaction of december 1 and 14 doesn't happen total shares sold = 657000+22000 = 679000 dividend per share = 1861200/679000 = $2.741

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