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Problem 1: A corporation has 10,000 shares of 13?%, $106 par noncumulative preferred stock outstanding and 21,000 shares of no-par common stock outstanding. At the end of the current? year, the corporation declares a dividend of $220,000. What is the dividend per share for preferred stock and for common? stock? ?
A. The dividend per share is $13.78 to preferred stock and $13.78 to common stock.B. The dividend per share is $9.33 to preferred stock and $3.91 to common stock.C. The dividend per share is $13.78 to preferred stock and $25.75 to common stock.D. The dividend per share is $13.78 to preferred stock and $3.91 to common stock.
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