Solution Description
1. Suppose Global Cable has declared a dividend of $2,500,000. The company has 240,000 shares of preferred stock that pay $2.10 per share and 2,600,000 shares of common stock. After finding the amount of dividends due the preferred shareholders, calculate the dividend per share of common stock.
T= 2,500,000
240,000 *2.10= 504,000
2,500,000 – 504,000 = 1,996,000
1,996,000/2,600,000= 499/650
0.076769
2.
