Calculate the Preferred and Common Dividend Per Share for the Following

question 20

Short Answer

Calculate the preferred and common dividend per share for the following. $\begin{array}{c}\begin{array}{lll}\\\\\text {Company}\\\hline \text {Mars Factory} \end{array}\begin{array}{lll}\text { Common}\\\text { Stock}\\\text { Shares}\\\hline 6,000,000 \end{array}\begin{array}{lll}\\\\\text { Shares}\\\hline200,000 \end{array}\begin{array}{c}\text {Preferred Stock}\\\\\text {Div./Par}\\\hline \$ 7.25 \end{array}\begin{array}{lll}\\\\\text {Cumul.}\\\hline\text {Yes}\end{array}\begin{array}{lll}\\\text {Dividend}\\\text { Declared }\\\hline\$ 7,050,00\end{array}\end{array}$
$\begin{array}{c}\begin{array}{lll}\\ \text {Arrears}\\\hline \text {2Years}\\\end{array}\begin{array}{lll}\text {Pref.}\\\text {Div/Share}\\\hline\\\end{array}\begin{array}{lll} \text {Common}\\ \text {Div/Share}\\\hline\\\end{array}\end{array}$

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the balance of income and expenditure over the preceding period.

Period Of Time

A specific duration marked by a start and end date or time.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit or loss over a specific period of time.

Financial Position

A snapshot of a company's financial health, encompassing assets, liabilities, and equity at a given point in time.