Question
15 The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales
15
The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow.
Assets | ||
Cash and short-term investments | $ 30,000 | |
Accounts receivable (net) | 20,000 | |
Inventory | 15,000 | |
Property, plant, and equipment | 185,000 | |
Total assets | $250,000 |
Liabilities and Stockholders' Equity | |||
Current liabilities | $ 45,000 | ||
Long-term liabilities | 70,000 | ||
Stockholders' equityCommon | 135,000 | ||
Total liabilities and stockholders' equity | $250,000 |
Income Statement | ||
Sales | $85,000 | |
Cost of goods sold | 45,000 | |
Gross margin | $40,000 | |
Operating expenses | (15,000) | |
Interest expenses | (5,000) | |
Net income | $20,000 |
Number of shares of common stock outstanding | 6,000 |
Market price of common stock | $20 |
Total dividends paid | $9,000 |
Cash provided by operations | $30,000 |
Using the data provided for Diane Company, what are the dividends per common share?
a. $0.67
b. $20.00
c. $3.00
d. $1.50
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