A corporation has 2,000 shares of 10 percent,$50 par-value preferred stock and 20,000 shares of $5 par-value common stock outstanding.If the board of the directors decides to distribute dividends totaling $80,000,the common stockholders will receive a dividend of

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The preferred stockholders receive a fixed dividend of 10% of the $50 par value, which is $5 per share. With 2,000 preferred shares, the total preferred dividends are $10,000. The remaining $70,000 ($80,000 total dividends - $10,000 preferred dividends) is distributed among the 20,000 common shares, resulting in $3.50 per common share.

A Corporation Has 2,000 Shares of 10 Percent,$50 Par-Value Preferred