Nunez Company has 50,000 shares of $300 par value, 8% cumulative preferred stock and 160,000 shares of $180 par value common stock. Nunez declares and pays cash dividends amounting to $1,320,000.
If no arrearage on the preferred stock exits, how much in total dividends is paid to each class of stock?

Question

Quizplus · Accepted Answer

$300 × 50,000 × 8% = $1,200,000
Balance to common: $1,320,000 - $1.200,000 = $120,000

Nunez Company Has 50,000 Shares of $300 Par Value, 8