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    tami64's Avatar
    tami64 Posts: 2, Reputation: 1
    New Member
     
    #1

    Jul 27, 2009, 05:18 PM
    How to find dividends o of common stock
    I have read this chapter and tried to figure this out all day I can't.
    A company declare four quarterly dividends of $0.75 a share on the sommon stock and 1/4 of the amount due anually on the preferred stock. Then it asks you questions like what was the total amount paid by company to all common share holders for each quarterly divdend. I just need a formula to use to come up with the answer.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jul 27, 2009, 10:48 PM

    Dividends are paid on outstanding shares. If it's .75 per share, then you're just multiplying by the number of shares. (If you want to call multiplying a "formula." That word tends to spook people out and then they make things difficult. It's no different than buying 10 candy bars at 90c each and wanting to know how much total I spent.)

    How you might go about finding the outstanding shares is a different matter and will be based on how the information has been presented to you. Outstanding shares is the issued shares less any treasury shares, so that's what you're looking for. If you don't get that, you'll have to tell us what information they're giving you.

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