The Board of Directors of Clarian Motels Has Declared a Dividend

question 90

Multiple Choice

The board of directors of Clarian Motels has declared a dividend of $3,000,000. The company has 150,000 shares of preferred stock that pay $1.20 per share and 1,800,000 shares of common stock. After finding the amount of dividends due the preferred shareholders, calculate the dividend per share of common stock. (Round your answer to the nearest cent if necessary)

• A) $0.44
• B) $2.99
• C) $1.57
• D) $0.75

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Definitions:

Coefficient Alpha

A statistic that is used to measure the internal consistency or reliability of a psychometric instrument.

Double-unaware Design

A research methodology where neither the participants nor the experimenters are aware of which individuals are in the control group versus the experimental group.

Incidence

The occurrence, rate, or frequency at which a new case of a disease or condition emerges in a specific population over a certain period of time.

Random Assignment

A technique used in research to place participants into experimental groups in a way that each participant has an equal chance of being in any group, ensuring the groups are comparable.