Looper, Inc.has 25,000 shares of 6%, ₤100 par value, noncumulative preference shares and 50,000 ordinary shares with a ₤1 par value outstanding at December 31, 2011.There were no dividends declared in 2010.The board of directors declares and pays a ₤250,000 dividend in 2011.What is the amount of dividends received by the common shareholders in 2011?

Question

Quizplus · Accepted Answer

The preference shareholders receive ₤150,000 (25,000 shares x ₤100 x 6%) first. The remaining ₤100,000 (₤250,000 - ₤150,000) goes to the ordinary shareholders.