question archive Loki Enterprises has the following stockholders' equity section of the 2004 balance sheet: Stockholders' Equity 8% Preferred Stock, par value, $85, 8600 shares issued and outstanding $ 731000 Common Stock, par value, $12 108000 shares issued and outstanding 1296000 Additional Paid-in Capital 2487672 Retained Earnings 1108737 Total Stockholders' Equity $ 5623409 Loki Enterprises declared and paid a $389000 cash dividend
Loki Enterprises has the following stockholders' equity section of the 2004 balance sheet: Stockholders' Equity 8% Preferred Stock, par value, $85, 8600 shares issued and outstanding $ 731000 Common Stock, par value, $12 108000 shares issued and outstanding 1296000 Additional Paid-in Capital 2487672 Retained Earnings 1108737 Total Stockholders' Equity $ 5623409 Loki Enterprises declared and paid a $389000 cash dividend
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Loki Enterprises has the following stockholders' equity section of the 2004 balance sheet:
Stockholders' Equity
8% Preferred Stock, par value, $85,
8600 shares issued and outstanding $ 731000
Common Stock, par value, $12
108000 shares issued and outstanding 1296000
Additional Paid-in Capital 2487672
Retained Earnings 1108737
Total Stockholders' Equity $ 5623409
Loki Enterprises declared and paid a $389000 cash dividend. The preferred stock is cumulative. The last time that preferred stock dividends were paid was in 2001.
1) Compute the total dividend that is paid to the preferred stockholders.
2) Compute the total dividend that is paid to the common stockholders.
The total dividends paid to the preferred stockholders is $
and the
total dividends paid to the common stockholders is $
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1) Total dividend paid to Preferred stockholder = $175,440
2) Total dividend paid to Common stockholder = $213,560
Step-by-step explanation
Cumulative preferred share means dividend not paid in any year will be cumulative and paid first in year in which dividend is paid.
Preferred dividend per year = 731,000 x 8% = 58,480
1) Total dividend paid to Preferred stockholder = 2002 dividend + 2003 dividend + 2004 dividend
= 58,480 + 58,480 + 58,480
= 175,440
2) Total dividend paid to Common stockholder = Dividend paid - Preferred dividend
= 389,000 - 175,440
= 213,560
