Assume AirJet Best Parts has also a preferred stock issue. The most recent dividend per share paid on the stock was also $1.50, the same as the common stock. Which one would you think has a higher price, the preferred stock or the current stock?

To determine which stock, the preferred stock or the common stock, will likely have a higher price, we need to consider the nature of preferred stocks and common stocks.

Preferred stocks typically have a fixed dividend rate, stated as a percentage of the stock's par value, which is the initial price at which the stock is issued. In this case, the preferred stock of AirJet Best Parts pays a dividend per share of $1.50.

Common stocks, on the other hand, do not have a fixed dividend rate. Dividends for common stocks are decided by the company's board of directors and can vary based on the company's profitability and other factors.

Now, let's analyze the impact of the dividend per share on the stock prices:

1. Preferred Stock: Since the dividend per share for both the preferred stock and common stock is the same ($1.50), the dividend payment does not provide any information regarding the relative prices of the two stocks. The price of preferred stock is primarily influenced by the stock's dividend yield, interest rates, and the creditworthiness of the company.

2. Common Stock: The stock price of common stock is influenced by various factors, including the company's financial performance, growth prospects, market conditions, and investor sentiment. It is not directly tied to the dividend per share.

Given this information, we cannot determine unequivocally which stock, the preferred stock or the common stock, will have a higher price based solely on the dividend per share. We would need to analyze additional factors, such as the company's financials, market conditions, and investor sentiment, to make a more informed decision.