A corporation has 10,000 shares of 20%,$100 par cumulative preferred stock outstanding and 37,000 shares of no-par common stock outstanding.Dividends of $25,000 are in arrears.At the end of the current year,the corporation declares a dividend of $246,000.What is the dividend per share for preferred stock and for common stock? (Round your answer to the nearest cent. )

Question

Quizplus · Accepted Answer

B)
C)Total amount paid to preferred shareholders: ($100 × 20% × 10,000 shares current year)+ $25,000 in arrears = $225,000
Dividend per preferred share = $225,000 / 10,000 shares = $22.50
Dividend per common share: $246,000 - $225,000 = $21,000.00 / 37,000 shares = $0.57

A Corporation Has 10,000 Shares of 20%,$100 Par Cumulative Preferred