A firm that must pay $2,000,000 in preferred dividends has $3,000,000 available for preferred and common dividends. It has 400,000 shares of common stock outstanding, and a .4 dividend payout ratio. The firms dividend per common share is a. $1.00 b. $1.50 c. $5.00 d. $7.50
A firm that must pay $2,000,000 in preferred dividends has $3,000,000 available for preferred and common dividends. It has 400,000 shares of common stock outstanding, and a .4 dividend payout ratio. The firms dividend per common share is a. $1.00 b. $1.50 c. $5.00 d. $7.50
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 38MCQ
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A firm that must pay $2,000,000 in preferred dividends has $3,000,000 available for preferred and common dividends. It has 400,000 shares of common stock outstanding, and a .4 dividend payout ratio.
The firms dividend per common share is
a. $1.00
b. $1.50
c. $5.00
d. $7.50
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