A corporation has 18,000 shares of 13%,$50 par cumulative preferred stock outstanding and 34,000 shares of no-par common stock outstanding.Dividends of $22,000 are in arrears.At the end of the current year,the corporation declares a dividend of $208,000.What is the dividend per share for preferred stock and for common stock? (Round your answer to the nearest cent. )

Question

Quizplus · Accepted Answer

B)
C)Total amount paid to preferred shareholders: ($50 × 13% × 18,000 shares current year)+ $22,000 in arrears = $139,000
Dividend per preferred share = $139,000 / 18,000 shares = $7.72
Dividend per common share: $208,000 - $139,000 = $69,000.00 / 34,000 shares = $2.03

A Corporation Has 18,000 Shares of 13%,$50 Par Cumulative Preferred