Hayes Enterprises began 2019 with a retained earnings balance of $928,000. During 2019, the firm earned $377,000
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Hayes Enterprises began 2019 with a retained earnings balance of $928,000. During 2019, the firm earned $377,000 after taxes. From this amount, preferred stockholders were paid $47,000 in dividends. At year-end 2019, the firm’s retained earnings totaled $1,048,000. The firm had 140,000 shares of common stock outstanding during 2019.
a. Prepare a statement of retained earnings for the year ended December 31, 2019, for Hayes Enterprises. (Note: Be sure to calculate and include the amount of cash dividends paid in 2019.)
b. Calculate the firm’s 2019 earnings per share (EPS).
c. How large a per-share cash dividend did the firm pay on common stock during 2019?
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...
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a Common stock dividends Net profits after taxes Preferred dividends Retained ea...View the full answer
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Related Book For 
Principles of Managerial Finance
ISBN: 978-0134476315
15th edition
Authors: Chad J. Zutter, Scott B. Smart
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