The balance of the retained earnings at the beginning of


Steve Corp At Dec. 31, 2015

6% cumulative preferred stock $100 par. 10,000 shares authorized, 6,000 shares issued

common stock $3 par 500,000 shares authorized 300,000 shares issued and outstanding

additional paid in capital: preferred stock

addition paid in capital: common stock

Retained earnings

dividends have been declared and paid for 2015

Refer to the information above. The balance of the Retained Earnings at the beginning of the year was $950,000 and there were no dividends in arrears. Net income for 2015 was $980,000. What was the amount of dividend declared on each share of common stock during 2015?

a. 2.68

b. 2.00

c. 2.08

d. 2.50

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Financial Management: The balance of the retained earnings at the beginning of
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