Question

PLEASE HELP The Brick Corporation pays its cumulative preferred stockholders $1.95 per share. There are 40,000 shares of preferred stock and 80,000 shares of common stock. In 2001, 2002, and 2003, Brick Corporation did not declare a dividend. In 2004, the Board of Directors declared a $600,000.00 dividend. What is the amount that the common shareholder will receive per share?

Answer 1

$3.60

Explanation:

Answer 2

$5.00

Explanation:

Dividend Per Share = Total Dividends Paid / Shares Outstanding

How many shares outstanding?

Preferred stock + common stock

80,000+40000=120000

Dividend Per Share = $600,000.00 /120000

=$5.00

The preferred shareholder gets 1.95 per share plus dividends.

The common shareholder only gets dividends.