A corporation has 10,000 shares of 6 percent,$50 par-value cumulative preferred stock and 50,000 shares of $4 par-value common stock outstanding.Last year,no dividends were paid.This year,the board of directors decided to pay a dividend of $80,000.The common stockholders will receive a dividend of

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The preferred stockholders are entitled to a dividend of $30,000 (10,000 shares x $3 per share). The remaining $50,000 is available for the common stockholders. With 50,000 shares outstanding, each common stockholder will receive a dividend of $1.00 per share ($50,000 / 50,000 shares).

A Corporation Has 10,000 Shares of 6 Percent,$50 Par-Value Cumulative