Happy Farmer,Inc.has 43,000 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 5% noncumulative with a $100.00 par value.On October 15,2017,the company declares a total dividend payment of $44,000.What is the total amount of dividends that will be paid to the common stockholders?

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Quizplus · Accepted Answer

B)Dividend paid to the common stockholders = $44,000 - [($100.00 × 5%)× 3,000] = $29,000