Nutritech Corporation has 500,000 shares of 7.5%,$100 par value cumulative preferred stock issued with 45,000 shares issued and 40,000 outstanding,as well as 275,000 shares of $1 par value common stock issued and 250,000 shares outstanding.Dividends relative to the preferred stock are three years in arrears.If Nutritech declares a $2,887,500 dividend during the current period,the per share dividend applicable to the preferred and common stockholders is:

Question

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The preferred stock dividend is $7.50 per share annually. With three years in arrears, the total owed per preferred share is $22.50 ($7.50 x 3). Adding the current year's dividend of $7.50, the total is $30.00 per preferred share. After paying the preferred dividends, the remaining amount is distributed to common stockholders, resulting in $6.75 per common share.

Nutritech Corporation Has 500,000 Shares of 7