A company has 20,000 shares of Preferred Shares outstanding paying 0.30 cents dividend per share.It also has 110,000 shares of common stock outstanding.If the company decides to pay a total of $35,000 in dividends.The preferred stock is cumulative with two years' dividends in arrears.What is the amount of dividend preferred stockholders will receive?

Question

Quizplus · Accepted Answer

preferred stock dividend: $0.30 * 20,000 = $6,000 Dividend in arrears: 3 * $6,000 = $18,000.

A Company Has 20,000 Shares of Preferred Shares Outstanding Paying