Hometown Grocery,Inc.has 41,000 shares of common stock outstanding and 5000 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.)

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Quizplus · Accepted Answer

Dividend paid to the common stockholders = $55,000.00 - [($100.00 × 4%) × 5000] =
$ 11ea8873_d4d4_6ffa_bb89_ab5ec19beedc_TB5026_00 Dividends per common share = $35,000.00 / 41,000 = $0.85