Bordey Corporation's Board of Directors declared a dividend payment of $50,000. Bordey has outstanding 16,000 shares...

Bordey Corporation's Board of Directors declared a dividend payment of $50,000. Bordey has outstanding 16,000 shares of $1 par value common stock and 13,000 shares of 6% $50 par value preferred stock.

What is the per share dividend amount that will be payed to the common stockholders?

Group of answer choices

$3.85

$3.69

$3.00

$0.69

$0.23

Solutions

Expert Solution

· Correct Answer = Option #4: $ 0.69

A	Dividend declared	$50,000
B = 13000 shares x $ 50 x 6%	Preferred shares dividend	$39,000
C = A - B	Dividend for common stock holder	$11,000
D	No. of common shares outstanding	16000
E = C/D	Dividend per share for common stock	$0.69 [Answer]

ekkarill92 answered 1 year ago

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