1)The Blankenship company paid a cash dividend of $0.44 per share during the cur

Question

1)The Blankenship company paid a cash dividend of $0.44 per share during the current year and reported 18,000 shares of common stock issued and 2,000 common shares in treasury stock during the current year. The year-end market price per share was $27.50. Calculate the following: (1) total amount of cash dividends paid to common shareholders and (2) dividend yield.

2)A company has $2,400,000 in stockholders' equity, that includes 500 shares of $50 par value noncallable preferred stock outstanding and 250,000 shares of common stock outstanding. Calculate the book value per (1) preferred share and (2) common share.

Please help

Explanation / Answer

1)

a) Total = 0.44*20,000 = $ 8,800

b) yield = 0.44/27.5 = 0.016 = 1.6 %

2)

a) $50

b) (2,400,000 - 500*50)/250,000 = $9.5

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