Devons Company has 24,000 ordinary shares with a $1 par issued and outstanding. The company also has 2,000 shares of $100 par 4% cumulative preference shares outstanding. The company did not pay the preference dividends in 2013 or 2014. What amount of dividends must the company pay the preference shareholders in 2015 if they wish to pay the ordinary shareholders a dividend?

Question

Quizplus · Accepted Answer

The Answer of Devons Company has 24,000 ordinary shares with a $1 par issued and outstanding. The company also has 2,000 shares of $100 par 4% cumulative preference shares outstanding. The company did not pay the preference dividends in 2013 or 2014. What amount of dividends must the company pay the preference shareholders in 2015 if they wish to pay the ordinary shareholders a dividend?

Devons Company Has 24,000 Ordinary Shares with a $1 Par