Great Inc. has 8,000 shares of 5% $100 par non-cumulative preferred stock and 200,000 shares of $1 par common stock outstanding. Great Inc. declared…

Great Inc. has 8,000 shares of 5% $100 par non-cumulative preferred stock and 200,000 shares of $1 par common stock outstanding. Great Inc. declared a $500,000 dividend for the year 2008. No dividends were paid in 2007.Compute the dividends to preferred stock and common stock for 2008, as well as the dividends per share of common stock.

SolutionDividend paid to preferred and common stockYear2008 Total DividendPreferred StockCommon Stock500,00040000460,000Dividend per share$2.30