Question
Your company has $200,000 to distribute in dividends to three groups: A:One years dividends in arrears for 5,000 shares of cumulative preferred stock ($0.40 per
Your company has $200,000 to distribute in dividends to three groups:
A:One years dividends in arrears for 5,000 shares of cumulative preferred stock ($0.40 per share)
B:The current years dividends for those 5,000 shares of cumulative preferred stock ($0.40 per share)
C:Dividends on 75,000 shares of common stock
1. How much is distributed to group A?
2. How much is distributed to group B?
3. How much is distributed to group C?
4. What is the dividend per share of common stock?
5. Find the P/E ratio to the nearest whole number for a corporation that reported last years net income of $5.12 per share if the companys stock sells for $62.18 per share.
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