# retained earnings and stocks

Bio-Tech Company has had a very successful year and earnings are \$21million. The company has 12 million shares outstanding and will pay a dividend of \$1.00/share. The old value of retained earnings account is 125 million. What is the retained earnings for the year and the new value of retained earnings account?
A. \$21 million & \$146 million
B. \$9 million & \$134 million
C. \$12 million & \$137 million
D. None of the above

 pready Posts: 2,656, Reputation: 882 Ultra Member #2 Nov 19, 2011, 11:04 AM
To calculate the dividends you need to take 12 million shares outstanding times \$1.00 per share.
So: 12 million * \$1.00 = dividneds

Now the \$21 million - dividends = Retained Earnings for the Year.

Retained Earnings for the Yer + the old value of Retained Earnings = New value of Retained Earnings.

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