Question

Required information [The following information applies to the questions displayed below.] Raphael Corporation's common stock is currently selling on a stock exchange at $180 per share, and its current balance sheet shows the following stockholders' equity section. $ 95,000 Preferred stock-5% cumulative, $_ par value, 1,000 shares authorized, issued, and outstanding Common stock-$___ par value, 4,000 shares authorized, issued, and outstanding Retained earnings Total stockholders' equity 160,000 390,000 $ 645,000 5.1 If two years' preferred dividends are in arrears and the board of directors declares cash dividends of $22,100, 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 5.2 What is the amount of dividends per share for the common stock? (Round your answer to two decimal places.) Dividend per share

Answer 1

4750 Annula Preferred Dividend = 95000*5% Dividend to Preferred Stock holders Dividend in arrears(2*4750) Current Year Dividend 9500 4750 Total Amount paid to the preferred shareholders Total Amount paid to the Common shareholders 14250 7850 Dividend Per share = Dividend / Total stock outstanding For common Stock Dividend Per share =7850/4000 1.96