The year-end 2009 balance sheet for Tom’s Copy, Inc. lists common stock ($1.00 p
ID: 2386678 • Letter: T
Question
The year-end 2009 balance sheet for Tom’s Copy, Inc. lists common stock ($1.00 par value) of $5,660, capital surplus of $20,924 and retained earnings of $48,552. On the 2010 year-end balance sheet, retained earnings are listed as $50,170. The firm’s net income in 2010 was $9,264. No stock was issued or repurchased in 2010. What were dividends per share paid by the firm in 2010?Record your answer rounded to the nearest cent. Do not include a dollar sign or commas in your answer. For example, record $10.248976 as 10.25.
Explanation / Answer
Retained Earnings 01/01/2009 -------------------$50,170
Add : Net Income for 2010 ------------------------$9,264
Total RE available for distribution----------------$59434
Less : Retained Earnings 01/01/2010-----------$50,170
Dividend paid out ----------------------------------$9,264
No. of Common Stock $5,660,/ $1--------------- $5,660
Dividend per share $9,264 / $5,660------------$1.64 per share
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