Tescott Corporation is authorized to issue 500,000 shares of $1 common stock and 50,000 shares of preferred stock.The preferred stock has a $20 par value,and a 10% dividend,is cumulative.Tescott has 100,000 shares of common stock issued and outstanding and 6,000 shares of preferred stock issued and 5,000 outstanding.The preferred stock is two years in arrears when the board of directors declares a $300,000 dividend.How much of the dividend goes to common stockholders and how much to preferred stockholders?

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The Answer of Tescott Corporation is authorized to issue 500,000 shares of $1 common stock and 50,000 shares of preferred stock.The preferred stock has a $20 par value,and a 10% dividend,is cumulative.Tescott has 100,000 shares of common stock issued and outstanding and 6,000 shares of preferred stock issued and 5,000 outstanding.The preferred stock is two years in arrears when the board of directors declares a $300,000 dividend.How much of the dividend goes to common stockholders and how much to preferred stockholders?

Tescott Corporation Is Authorized to Issue 500,000 Shares of $1