Preffered stock: 6%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for three prior years (2007-2009)
Common Stock: $100 par value, 2,000 shares issued and outstanding.
Total Dividends declared and paid in 2010 were $50,000. How much of the 2010 dividend will be paid to the common stockholders assuming the preferred stock is cumulative?
A. $12,000
B. $50,000
C. $47,000
D. $38,000
1
Expert's answer
2012-05-09T08:12:00-0400
C. $47,000
If preffered stock is 6% than 94% goes to Common stock. 94%*$50,000=$47,000
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