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Fritz Corporation has 800,000 shares of preferred stock and 1,800,000 shares of common stock. The cumulative preferred stock has a stated dividend of $2.50 per share. Under normal conditions, Kreisler pays out 30% of earnings available to common stockholders; however, because of a severe recession, Fritz retained all earnings last year. This year, Fritz earned net income of $6.4 million.
Calculate the dividend per share to be received by the common stockholders this year.© BrainMass Inc. brainmass.com October 25, 2018, 12:27 am ad1c9bdddf
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Fritz Corporation has 800,000 shares of preferred stock and 1,800,000 shares of common stock. The cumulative preferred stock has a stated dividend of $2.50 per share. Under normal conditions, ...
The solution explains in steps how to calculate the Dividend per Share.
Calculating Dividends Per Share
Wings Inc., a software development firm, has stock outstanding as follows: 25,000 shares of cumulative 1%, preferred stock of $40 par, and 50,000 shares of $120 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $7,500; second year, $10,500; third year, $25,000; fourth year, $60,000.
Calculate the dividends per share on each class of stock for each of the four years. Round all answers to the nearest whole cent. If no dividends are paid in a given year, enter "0".View Full Posting Details