Globex Corp. has 1000 shareholders as of 31 Dec 2019. On that date Globex Corp released its earnings. The earnings for the period is $1 million. The management decided to distribute all the earnings to the shareholders. On 25th March 2020 Globex Corp issued another 1000 shares to a hew set of shareholders. On 31 Dec 2020 Globex Corp reported earnings of $1 million. The management again decided to distribute all its profit to shareholders. . What is the dividend per share on 31 Dec 2019? i. What is the dividend per share on 31 Dec 2020? ii. How does the dividend per share on 31 Dec 2020 affect the old shareholders? Explain clearly.

Globex Corp. has 1000 shareholders as of 31 Dec 2019. On that date Globex Corp released its earnings. The earnings for the period is $1 million. The management decided to distribute all the earnings to the shareholders. On 25th March 2020 Globex Corp issued another 1000 shares to a hew set of shareholders. On 31 Dec 2020 Globex Corp reported earnings of $1 million. The management again decided to distribute all its profit to shareholders. . What is the dividend per share on 31 Dec 2019? i. What is the dividend per share on 31 Dec 2020? ii. How does the dividend per share on 31 Dec 2020 affect the old shareholders? Explain clearly.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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