Farber Company has 24000 shares of $1 par common stock issued and outstanding. The company also has 2000 shares of $100 par 4% cumulative preferred stock outstanding. The company did not pay the preferred dividends in 2015 or 2016. What amount of dividends must the company pay the preferred shareholders in 2017 if they wish to pay the common stockholders a dividend?

Question

Quizplus · Accepted Answer

The Answer of Farber Company has 24000 shares of $1 par common stock issued and outstanding. The company also has 2000 shares of $100 par 4% cumulative preferred stock outstanding. The company did not pay the preferred dividends in 2015 or 2016. What amount of dividends must the company pay the preferred shareholders in 2017 if they wish to pay the common stockholders a dividend?

Farber Company Has 24000 Shares of $1 Par Common Stock