Shown Below Is Information Relating to the Shareholders' Equity of Grant

question 57

Multiple Choice

Shown below is information relating to the shareholders' equity of Grant Corporation at December 31, 2009:
$\begin{array}{lr}\text { \( 6 \% \) non-cumulative preference share, \( \$ 100 \) par, 10,000 shares authorized,}&\$600,000\\\text { 6,000 shares issued}\\\\\text { Ordinary shares, \( \$ 3 \) par, 500,000 shares authorized, 300,000 shares issued and }&\$900,000\\\text { outstanding}\\\text { Share premium: preference share } & \$ 60,000 \\\text { Share premium: ordinary share } & \$ 1,900,000 \\\text { Retained earnings } & \$ 1,090,000\end{array}$
Dividends have been declared and paid for 2009.


-Refer to the above data. The balance in Retained Earnings at the beginning of the year was $950,000, and there were no dividends in arrears. Profit for 2009 was $980,000. What was the amount of dividend declared on each share of ordinary share during 2009?

• A) $2.50.
• B) $2.08.
• C) $2.00.
• D) $2.68.

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