Occidental Produce Company has 40,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $0.01 par value; the preferred stock is 4% non-cumulative, with $100 par value. On October 15, 2014, the company declares a total dividend payment of $40,000.
-How much dividend will be paid to the preferred shareholders?

Question

Occidental Produce Company has 40,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $0.01 par value; the preferred stock is 4% non-cumulative, with $100 par value. On October 15, 2014, the company declares a total dividend payment of $40,000. 
-How much dividend will be paid to the preferred shareholders?

Quizplus · Accepted Answer

C) Calculations: ($100 × 4%) × $2000 = $8,000

Occidental Produce Company Has 40,000 Shares of Common Stock Outstanding