Plymouth Corporation has only one class of stock. There are 100,000 shares outstanding. During 2019, the corporations

Question:

Plymouth Corporation has only one class of stock. There are 100,000 shares outstanding. During 2019, the corporation’s net income after taxes was $900,000. The policy of the corporation is to declare dividends equal to 20 percent of its net income. Elaine White owns 400 shares of the stock. How much will White receive as a dividend on her shares?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...