CapiCal Enterprises Recorded Net Income of $20 Million for the Year

Multiple Choice

CapiCal Enterprises recorded net income of $20 million for the year. The company has 1,500,000 preferred shares outstanding, with a stated dividend of $.80. It also has 5 million common shares outstanding. If the company wishes its total dividend payout for the year to equal 20% of its net income, what will be the dividend paid on each common share?

A) $.43
B) $.56
C) $.62
D) $.80
E) $.82