Below is the stockholders' equity section of the balance sheet of Craft Corporation (with certain details omitted): Stockholders’ equity: 6% preferred stock, $100 par, 10,000 shares authorized and ? shares issued $800,000 Common Stock, $25 par, 50,000 shares authorized, ? shares issued 625,000 Additional paid-in capital: Preferred stock 150,000 Common stock 225,000 Total paid-in capital $1,800,000 Retained earnings 950,000 Total stockholders’ equity ……………………………… $2,750,000 The balance in retained earnings at the beginning of the current year was $675,000, and there were no dividends in arrears. Net income for the current year was $350,000. Based on this information, what is the amount of the dividends declared on each share of common stock during the current year? Select one: a. $2.27 b. $4.46 c. $1.08 d. $3.00
Earned Capital and Dividends
Below is the
|
Stockholders’ equity: |
|
|
6% |
$800,000 |
|
Common Stock, $25 par, 50,000 shares authorized, ? shares issued |
625,000 |
|
Additional paid-in capital: |
|
|
Preferred stock |
150,000 |
|
Common stock |
225,000 |
|
Total paid-in capital |
$1,800,000 |
|
|
950,000 |
|
Total stockholders’ equity ……………………………… |
$2,750,000 |
The balance in retained earnings at the beginning of the current year was $675,000, and there were no dividends in arrears. Net income for the current year was $350,000. Based on this information, what is the amount of the dividends declared on each share of common stock during the current year?
Select one:
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