If the company pays a $15,000 dividend, and the preferred stock is noncumulative, what is the amount the common stockholders will receive?
A) $15,000
B) $9,000
C) $9,900
D) $0

Question

Quizplus · Accepted Answer

If the preferred stock is noncumulative, preferred stockholders are paid first. Assuming preferred dividends are $6,000, the remaining $9,000 goes to common stockholders.

If the Company Pays a $15,000 Dividend, and the Preferred