Shares of cumulative preferred stock outstanding


Figurate Industries has 750,000 shares of cumulative preferred stock outstanding. It has passed the last three quarterly dividends of $2.50 per share and now (at the end of the current quarter) wishes to distribute a total of $12 million to its shareholders. If Figurate has 3 million shares of common stock outstanding, how large a per-share common stock dividend will it be able to pay?

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Finance Basics: Shares of cumulative preferred stock outstanding
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