Happy Farmer,Inc.has 44,000 shares of common stock outstanding and 3,000 shares of preferred stock outstanding.The common stock is $0.08 par value; the preferred stock is 8% noncumulative with a $100.00 par value.On October 15,2017,the company declares a total dividend payment of $56,000.What is the total amount of dividends that will be paid to the common stockholders?

Question

Quizplus · Accepted Answer

B)Dividend paid to the common stockholders = $56,000 - [($100.00 × 8%)× 3,000] = $32,000