Explore BrainMass
Share

Calculating the Dividend per Share

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Can you help me get started with this assignment?

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 September 20, 2018, 6:13 pm ad1c9bdddf - https://brainmass.com/business/dividend-yield/calculating-the-dividend-per-share-228508

Solution Preview

Hello

Please find the solution below.

Thanks.

--------------------

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, ...

Solution Summary

The solution explains in steps how to calculate the Dividend per Share.

$2.19