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A company has 360,000 shares authorized, 120,000 shares issued, and 80,000 shares outstanding. It declares cash dividends of $1 per share. How much cash will the company pay for dividends?

 
 
 
 
 
 
 

Dividends are only paid on shares outstanding. So, the cash dividends = 80,000 shares x $1 per share = $80,000.

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