question archive A company has 30,000 shares of $100 par value, 5% cumulative preferred stock, and 100,000 shares of $10 par value common stock
A company has 30,000 shares of $100 par value, 5% cumulative preferred stock, and 100,000 shares of $10 par value common stock
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A company has 30,000 shares of $100 par value, 5% cumulative preferred stock, and 100,000 shares of $10 par value common stock. The company pays dividends totaling $350,000 during the year. Answer the following questions using this information.
Assuming no dividends in arrears are owed, how much did the preferred shareholders receive this year? ?
How much did common shareholders receive?
Assume there is one year of preferred dividends in arrears. How much would common shareholders receive?
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Assuming no dividends in arrears are owed:
Total dividends to preferred shareholders - $150,000
Total dividends to common shareholders - $200,000
Assuming there is one year of preferred dividends in arrears:
Total dividends to common shareholders - $50,000
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