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Divac's preferred stock is $100 par, 8% stock

Finance

Divac's preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per share. There are no dividends in arrears on the stock. The common stock has a par value of $4 per share. Assume that the common stockholders have a right to the total net income of $66,000.

Required:

1. Determine the dividend payout ratio for the common stock. Round the payout ratio to four decimal places, but enter as a percentage to two decimal places. For example, .34678 rounds to .3468 and would be entered as 34.68, indicating 34.68%.

fill in the blank 1

 

 %

2. Determine the book value per share of Divac's common stock. Round the book value per share to two decimals.

$fill in the blank 2

 

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