If a Company Has 14 Million Common and 5 Million

question 21

Multiple Choice

If a company has 14 million common and 5 million preferred shares outstanding with dividend per share of $2.8, reported earnings of $70 million and a dividend payout ratio of 25%, what was the dividend paid per share?

• A) $0.50
• B) $1.00
• C) $2.50
• D) $4.00
• E) $5.00

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Definitions:

Product Life Cycle

The stages a product goes through from its introduction to the market until its decline and eventual withdrawal.