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26 October, 01:29

A corporation has 12 comma 000 shares of 10 %, $ 102.00 par noncumulative preferred stock outstanding and 28 comma 000 shares of nominuspar common stock outstanding. At the end of the current year, the corporation declares a dividend of $ 220 comma 000. What is the dividend per share for preferred stock and for common stock? (Round your answer to the nearest cent.)

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  1. 26 October, 01:45
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    preferred 10.2 per share

    common 3.49 per share

    Explanation:

    the preferred stock will receive their dividends firsht:

    12,000shares x $102 each x 12% return = 122.400‬

    $122,400/12,000 shares = $10.2 per share

    available for common stock:

    220,000 declared dividends - 122,400 preferred = 97,600

    $97,600 / 28,000 common stock = 3,4857 = $ 3.49
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