Common stockholders will recieve a dividend


A corporation has 1,000 shares of 10%, $50 par-value preferred stock and 10,000 shares of $5 par-value common stock outstanding. If the board of the directors decides to distribute dividends totaling $40,000, the common stockholders will recieve a dividend of _______ a share.

a) $5.00

b) $4.00

c) $3.50

d) $3.75

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Accounting Basics: Common stockholders will recieve a dividend
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