Glow Corporation has 50,000 shares of preferred shares outstanding, with annual dividends paid at the rate of $1.50 per share. Glow also has 100,000 shares of common shares outstanding. If Glow declares a $250,000 dividend in 2020, each outstanding share of common shares would receive:

Question

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First, calculate the total dividends for preferred shares: 50,000 shares * $1.50 = $75,000. Then, subtract this amount from the total declared dividends: $250,000 - $75,000 = $175,000 available for common shares. Divide this by the number of common shares: $175,000 / 100,000 shares = $1.75 per common share.

Glow Corporation Has 50,000 Shares of Preferred Shares Outstanding, with Annual