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

A)$375.
B)$4,125.
C)$7,125.
D)$7,500.
E)$11,250.

The question has asked you to understand the concept of AUTHOIZED, ISSUED AND SUBSCRIBED SHARES ( OUTSTANDING SHARES )
Authorized Shares = which the company is authorized to Issue
Issued Shares = which are actually issued to public for subscription
Outstanding
or Subscribed = which has been applied by public or which are being
represented by the Share Capital A/c

The total amount of cash dividend = O/S shares * Dividend/share
= 9500 * $ .075
= $7125

The correct answer is (C)