Figurate Industries has 800 comma 000800,000 shares of cumulative preferred stoc
ID: 2798687 • Letter: F
Question
Figurate Industries has
800 comma 000800,000
shares of cumulative preferred stock outstanding. It has passed the last three quarterly dividends of
$2.202.20
per share and now (at the end of the current quarter) wishes to distribute a total of
$1010
million to its shareholders. If Figurate has
3.43.4
million shares of common stock outstanding, how large a per-share common stock dividend will it be able to pay?
The per-share common stock dividend Figurate will be able to pay is
$nothing.
(Round to the nearest cent.)
Explanation / Answer
Preffered shareholders will get 800000*(3+1)*2.2=7.04 million
Remaining will be 10-7.04=2.96 million
Hence, common shareholders will receive 2.96/3.4=0.870588 dividend per share
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