Answer:
$0.36 per share
Step-by-step explanation:
The data provided in the question are as follows
Common stock outstanding = 50,000 shares
Preferred stock outstanding = 4,000 shares
Par value of common stock = $4
Interest rate and par value of preferred stock = 9% and $100
Total dividend payment declared = $54,000
So, the amount of dividend for each share of common stock is
= (Total dividend payment declared - Preferred stock outstanding × interest rate × par value) ÷ (common stock outstanding)
= ($54,000 - 4,000 × $100 × 9%) ÷ (50,000 shares)
= ($54,000 - $36,000) ÷ (50,000 shares)
= $18,000 ÷ 50,000 shares
= $0.36 per share
