Seymore Corporation has the following number of shares of stock outstanding:.
_____ a)Preferred stockholders will receive $16,000 of cash dividends in the current year.
_____ b)After all required preferred dividends are paid, preferred and common stockholders will share the remaining dividend.
_____ c)Common stockholders will receive $48,000 of cash dividend in the current year.
_____ d)The amount of common dividends per share that stockholders will receive in the current year is $6.40.
_____ e)After the $80,000 dividend is paid, the amount of dividends in arrears equals zero.

Question

Quizplus · Accepted Answer

b)False c)True d)False e)T. Common dividend per share = Common dividend of $48,000 (calculated in part c)÷ 20,000 Common shares = $2.40 per sharee)This is true. Because the total dividend of $80,000 covers the dividend in arrears of $16,000 plus the $16,000 current dividend, the amount of dividend in arrears is now zero.

Seymore Corporation Has the Following Number of Shares of Stock