Hometown grocery, inc. has 41,000 shares of common stock outstanding and 5,000 shares of preferred stock outstanding. the common stock is $6.00 par value; the preferred stock is 4% noncumulative with a $100.00 par value. on october 15, 2018, the company declares a total dividend payment of $55,000. what is the amount of dividend that will be paid for each share of common stock? (round your answer to the nearest cent.)

Dividend Per Each Share = $0.85  per share

Explanation:

given data

common stock outstanding = 41,000 shares

preferred stock outstanding = 5,000 shares

common stock = $6.00 par value

preferred stock  4% noncumulative = $100.00 par value

total dividend payment = $55,000

solution

we get here Total Preferential Divided that is

Total Preferential Divided = Shares × Face Value × 4%     ........1

Total Preferential Divided = 100 × 5000 × 4%

Total Preferential Divided = 20000

so as that Total Equity Dividend is

Total Equity Dividend = Total Dividend - Total Equity Dividend  .............2

Total Equity Dividend = $55,000 - 20000

Total Equity Dividend = 35000

so Dividend Per Each Share will be

Dividend Per Each Share =   ..............3

Dividend Per Each Share =

Dividend Per Each Share = $0.85  per share

explanation:

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