1. Happy Corporation has issued 575,000 shares of common stock and 100,000 shares of cumulative preferred stock. Annual dividends on the cumulative preferred stock are $4 per share. Last year, dividends of $2.50 per share were paid to preferred stockholders. This year the company has $1,990,000 net income and the Board of Directors decide to distribute 60% of net income as dividends. If you own 300 shares of common stock in Happy Corporation, what will the total amount of your annual dividend be? Round your final answer to the nearest dollar.
$336
$750
$414
$783
2. You buy 200 shares of stock at a price of 38.50 and incur brokerage fees totaling $130. Calculate your total cost.
$7,830
$7,570
$7,731
$33,700