Reference no: EM131789080
Question - Canyon Corporation was founded in early 2007. The company lost money during its first year of operations, and therefore did not pay dividends in 2007.
In 2008, however, the company showed a profit of $1,500,000. Although the company's board of directors wanted to keep most of that money to fund various new products and expansion projects, it did authorize the payment of $200,000 in dividends on February 1, 2009.
As of February 1, 2009, the company had the following stock outstanding:
50,000 shares of common stock
500 shares of $200 par value, 5% cumulative preferred stock
What was the company's dividend per share of common stock?
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