The Board of Directors of Midwest Foods Has Declared a Dividend

question 155

Multiple Choice

The board of directors of Midwest Foods has declared a dividend of $3,500,000. The company has 300,000 shares of preferred stock that pay $2.85 per share and 2,500,000 shares of common stock. After finding the amount of dividends due the preferred shareholders, calculate the dividend per share of common stock.

• A) $1.06
• B) $1.57
• C) $13.50
• D) $4.50

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