Required Informatlon The following information applies to the questions displaye

Question

Required Informatlon The following information applies to the questions displayed below. Raphael Corporation's common stock is currently selling on a stock exchange at $192 per share, and its current balance sheet shows the following stockholders' equity section: Preferred stock-5% cumulative, $ par value, 1,eee shares $85,888 authorized, issued, and outstanding Common stock-S-. par value, 4,eee shares authorized, issued, and outstanding Retained earnings Total stockholders' equity 188,888 358,886 535,88e 3.1 If two years' preferred dividends are in arrears and the board of directors declares cash dividends of $23,850, what total amount will be paid to the preferred and to the common shareholders? Total amount paid to the preferred shareholders Total amount paid to the common shareholders 3.2 What is the amount of dividends per share for the common stock? (Round your answer to two declmal places.) Dividend per share

Explanation / Answer

Annual preferred dividends=85000*5%= 4250 5.1 Amount paid to preferred shareholders = 4250*3= 12750 Amount paid to common shareholders = 23850-12750= 11100 5.2 Dividend per share = 11100/4000= 2.78

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