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    Dividends per share of common stock

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    Iguana Inc. has 100,000 shares of common stock outstanding. Additionally, the company has 1000 shares of 100 par value, 5% cumulative preferred stock outstanding. This year, the board of directors has allocated $50,000 to pay dividends.
    If the Iguana did not pay dividends last year, what will be the company's dividends per share of common stock this year?

    Dividends per share of common stock = $2.00

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    Solution Preview

    We would need to remove the dividends to be paid on preferred stock. There were no dividends on preferred ...

    Solution Summary

    The solution explains how to calculate the amount of dividends per share of common stock.