A Company's Board of Directors Votes to Declare a Cash

question 65

Multiple Choice

A company's board of directors votes to declare a cash dividend of $0.75 per share of common stock. The company has 15,000 shares authorized, 10,000 issued, and 9,500 shares outstanding. The total amount of the cash dividend is:

• A)$10,250.
• B)$14,625.
• C)$7,125.
• D)$7,500.
• E)$11,250.

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Definitions:

Marginal Revenue Product

Refers to the additional revenue generated from employing one more unit of a resource or factor of production.

Marginal Resource Cost

The additional cost incurred by acquiring or using one more unit of a resource.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, reflecting a nation's cost of living.

Nominal Wages

The amount of money paid to employees not adjusted for inflation, reflecting the current dollar value of wages.