The outstanding capital stock of Bobo's Balloons Corporation consists of 5,000 shares of $5.00 par value, 9% preferred, and 5,000 shares of $15.00 par value common. The company has retained earnings of $120,000, all of which is to be paid out in dividends, and the preferred dividends were not paid during the 3 years preceding the current year.

Instructions

Determine the dividend per share of the common stock assuming the preferred stock is cumulative and participating.

Computations:

Dividend per share: