Question

Required information

[The following information applies to the questions displayed below.]

Raphael Corporation’s common stock is currently selling on a stock exchange at $165 per share, and its current balance sheet shows the following stockholders’ equity section.

Preferred stock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding	$	50,000
Common stock—$___ par value, 4,000 shares authorized, issued, and outstanding		120,000
Retained earnings		320,000
Total stockholders' equity	$	490,000

5.1 If two years’ preferred dividends are in arrears and the board of directors declares cash dividends of $18,500, what total amount will be paid to the preferred and to the common shareholders?

5.2 What is the amount of dividends per share for the common stock? (Round your answer to two decimal places.)

Answer 1