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What were the dividends on common stock in 2007?

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Kimm, Inc. had net income for 2007 of $2,120,000 and earnings per share on common stock of $5. Included in the net income was $300,000 of bond interest expense related to its long-term debt. The income tax rate for 2007 was 30%. Dividends on preferred stock were $400,000. The payout ratio on common stock was 25%. What were the dividends on common stock in 2007?

$430,000.

$482,500.

$645,000.

$530,000.

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Kimm, Inc. had net income for 2007 of $2,120,000 and earnings per share on common stock of $5. Included in the net income was $300,000 of bond interest expense related to its long-term debt. The income tax rate for 2007 was 30%. Dividends on ...

Solution Summary

Calculates the value of the dividends on common stock.

$2.19
See Also This Related BrainMass Solution

Common and Preferred Dividends

See attached file.
Preferred Stock Dividends
Based on the following information, illustrate the distribution of both
common and preferred stock dividends based on these two scenerios:
(1) Preferred stock is 7% and non-cummulative.
(2) Preferred Stock is 8% and cummulative.
(This will result in a total of 6 allocations, 2 for each of the 3 years.)
(3) Journalize the declaration of cash dividend for 2009 under part (2).
Shares of Preferred Stock
2,000
Par Value PS
$50
Shares of Common Stock
100,000
Par Value of CS
$10
Dividends 2007
$6,000
Dividends 2008
$12,000
Dividends 2009vidends 2009
28000,

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