2. What is the amount of dividends per share for the common stock? (Round your a

Question

2. What is the amount of dividends per share for the common stock? (Round your answer to two decimal places.)

1.
a. is not 7,000
b is not 14,600

2. it is not 3.65
My friend helped me and he got them wrong. So please I need help. Thanks :D

Required information The following information applies to the questions displayed below] Raphael Corporation's common stock is currently selling on a stock exchange at $197 per share, and its current balance sheet shows the following stockholders' equity section Preferred stock-5% cumulative, $ -par value, 1,000 shares s 70,ee0 authorized, issued, and outstanding Common stock- value, 4,eee shares authorized, issued and outstanding Retained earnings Total stockholders' equity 160,000 370,000 $600,000 5.1 If two years' preferred dividends are in arrears and the board of directors declares cash dividends of $21,600, what total amount will be paid to the preferred and to the common shareholders? Total amount naid to the preferred shareholders

Explanation / Answer

Annual preferred dividends = 70000*5%= 3500 a Total amount paid to the preferred shareholders = 3500*3=10500 Total amount paid to the common shareholders = 21600-10500 = 11100 b Amount of dividends per share for the common stock = 11100/4000= 2.78

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