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    AccountingMom's Avatar
    AccountingMom Posts: 2, Reputation: 1
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    #1

    Feb 20, 2008, 12:58 PM
    Cash Dividends on shares
    When a board declares a cash dividend on resulting shares after a 10 percent stock dividend does that mean that you add the outstanding and the stock dividends together and then multiply them by the $ per share?:confused:
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Feb 20, 2008, 09:24 PM
    If you're asking what I think you are, then yes. The stock dividends increase the shares of outstanding stock, so there will now be more outstanding shares to pay dividends on. And you're sure the cash dividend is after the stock dividend?
    AccountingMom's Avatar
    AccountingMom Posts: 2, Reputation: 1
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    #3

    Feb 21, 2008, 08:18 AM
    Yes, a cash dividend of $2 per share was declared on the resulting shares.?
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