Fritz Corporation Has 800,000 Shares of Preferred Stock and 1,800,000

question 72

Essay

Fritz Corporation has 800,000 shares of preferred stock and 1,800,000 shares of common stock. The cumulative preferred stock has a stated dividend of $2.50 per share. Under normal conditions, Kreisler pays out 30% of earnings available to common shareholders, however, because of a severe recession, Fritz retained all earnings last year. This year, Fritz earned net income of $6.4 million.
Calculate the dividend per share to be received by the common shareholders this year.

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