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The board of directors of streamlined airlines has declared a dividend of $4,300,000. the company has 400,000 shares of preferred stock that pay $0.70 per share and 2,750,000 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)

Answer :

The dividend per share of common stock is $1.46.

What is the dividend per share of common stock?

The first step is to determine the total value of the dividends that was paid to the preferred stock holders.

Total value = 400,000 x $0.70 = $280,000

The total value of the common stock dividends = $4,300,000 - $280,000 = $4,020,000

Dividend per share = 4,020,000 /  2,750,000 = $1.46

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