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How do you calculate cash Dividend?

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Anonymous

15y ago
Updated: 4/17/2022

In a school homework format, you might find the problem setup by giving you:

(a)Retained Earnings balance at the beginning of the year

(b)Additional Earnings during the year (may be before of after taxes)

(c)Dividends paid to preferred stock

(d)End of year retained earnings balance.

(e)Number of shares

In the above scenario, the per-share cash dividend would be calculated by the formula:

(a + b - c - d) / e

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Oliver Jacobi

Lvl 9
3y ago

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