Problemkimm inc had net income for 2008 of 2120000 and, Ask an Expert

Accounting

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Kimm, Inc. had net income for 2008 of $2,120,000 and earnings per share on common stock of $5. Included in the net income was $300,000 of bond interest expense related to its long-term debt. The income tax rate for 2008 was 30%. Dividends on preferred stock were $400,000. The payout ratio on common stock was 25%.

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Question: What were the dividends on common stock in 2008?

Note: Please provide reasons to support your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165625

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