Question

One company has $200,000 to distribute in dividends. There are 17,000 shares of preferred stock that earn dividends at $0.60 per share and 80,000 shares of common stock. How much per share does a common stockholder receive in dividends to the nearest cent?

Answer 1

17,000 * 0.6 = 10,200

200,000 - 10,200 = 189,800

189,800 / 80,000 = 2.37

Answer 2

Thank you.