To solve this, we calculate the preferred dividend per share and the common dividend per share based on the given data. Here’s the breakdown:

Step 1: Preferred Dividend per Share

The formula for the preferred dividend per share is: $\text{Preferred Dividend/Share} = \frac{\text{Total Preferred Dividend}}{\text{Number of Preferred Shares}}$

From the table:

• Total Preferred Dividend = $5,000,000
• Number of Preferred Shares = 1,000,000

$\text{Preferred Dividend/Share} = \frac{5,000,000}{1,000,000} = 5 \, \text{\$ per share.}$

Step 2: Common Dividend per Share

Since the preferred stock is non-cumulative and no arrears are declared, the common shareholders do not receive a dividend if the total dividend of $5,000,000 is fully allocated to preferred shareholders. This means the Common Dividend/Share is:

$\text{Common Dividend/Share} = \text{NONE.}$

Final Answers:

• Preferred Dividend per Share: $5
• Common Dividend per Share: NONE

Would you like a detailed explanation of any of the steps? Here are five related questions to consider:

1. What is the significance of cumulative vs. non-cumulative preferred stock in dividends?
2. How would the result change if declared arrears existed for the preferred shares?
3. What happens if the company declares a larger dividend than $5,000,000?
4. How does the dividend yield affect investor decisions for preferred stock?
5. How is the dividend per share affected when the number of shares increases?

Tip: Always check whether preferred stock is cumulative or non-cumulative when calculating dividends; this determines whether past unpaid dividends impact current payments.