Beagle Corporation has 20,000 shares of $10 par common stock outstanding and 10,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $300,000 dividend will be paid. What are the dividends per share payable to preferred and common, respectively?
A) $6; $12.
B) $18; $6.
C) $6; $6.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Preferred: $6 × 3 × 10,000 = $180,000; $180,000/10,000 = $18
Common: ($300,000 - $180,000) ÷ 20,000 = $6

Beagle Corporation Has 20,000 Shares of $10 Par Common Stock