The Duval Company was incorporated with 5% preferred capital stock of $600,000 and common stock of $1,600,000. The par value of the preferred stock was $100, and the par value of the common stock was $20.
Last year, dividends were declared by the Duval Company, which had earnings totaling $302,000.
a. What was the total amount of the preferred stock dividend?
b. What amount would have been paid on each share of common stock if all the earnings had been distributed?
$ per share