Devons Company has 24,000 shares of $1 par common stock issued and outstanding. The company also has 2,000 shares of $100 par 5% cumulative preferred stock outstanding. The company did not pay the preferred dividends in 2009 or 2010. What amount of dividends must the company pay the preferred shareholders in 2011 if they wish to pay the common stockholders a dividend?

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The Answer of Devons Company has 24,000 shares of $1 par common stock issued and outstanding. The company also has 2,000 shares of $100 par 5% cumulative preferred stock outstanding. The company did not pay the preferred dividends in 2009 or 2010. What amount of dividends must the company pay the preferred shareholders in 2011 if they wish to pay the common stockholders a dividend?

Devons Company Has 24,000 Shares of $1 Par Common Stock