Rhubarb Corporation's outstanding stock is 160 shares of $107, 11% cumulative nonparticipating preferred stock and 2,000 shares of $19 par value common stock. Rhubarb paid $2,200 cash dividends during the year. Common stockholders received: (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The preferred stockholders are entitled to a dividend of 11% of $107 per share, which is $11.77 per share. For 160 shares, this totals $1,883.20. Since the total dividends paid were $2,200, the remaining amount for common stockholders is $2,200 - $1,883.20 = $316.80, which rounds to $317.

Rhubarb Corporation's Outstanding Stock Is 160 Shares of $107, 11