A corporation has 40,000 shares of 8% cumulative preferred stock authorised and 20,000 shares issued. Also, there are 20,000 shares of common stock outstanding. Par value of each share (both preferred and common stock) is $100. A $350,000 dividend is paid. What is the amount of dividends per share on common stock? A) $8.00 B) $9.50 C) $17.5 D) None
A corporation has 40,000 shares of 8% cumulative preferred stock authorised and 20,000 shares issued. Also, there are 20,000 shares of common stock outstanding. Par value of each share (both preferred and common stock) is $100. A $350,000 dividend is paid. What is the amount of dividends per share on common stock? A) $8.00 B) $9.50 C) $17.5 D) None
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2.
Transcribed Image Text:A corporation has 40,000 shares
of 8% cumulative preferred stock
authorised and 20,000 shares
issued. Also, there are 20,000
shares of common stock
outstanding. Par value of each
share (both preferred and
common stock) is $100. A
$350,000 dividend is paid. What
is the amount of dividends per
share on common stock?
A) $8.00 B) $9.50 C) $17.5
D) None
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