A company declared a dividend of $2,200,000. The company has 55,000 shares of
common stock outstanding. What are the dividends per share of common stock?
2,200,000/55,000 = ?
40
To calculate the dividends per share of common stock, you need to divide the total dividend amount by the number of shares of common stock outstanding.
Dividends per share = Total dividend amount / Number of shares of common stock outstanding
In this case, the total dividend amount is $2,200,000, and the number of shares of common stock outstanding is 55,000.
Dividends per share = $2,200,000 / 55,000
Dividends per share = $40
Therefore, the dividends per share of common stock is $40.