A company has outstanding 9 million shares of $2 par value common shares and 1 million shares of $4 par value preferred shares.The preferred shares have $0.32 dividend per share.The company declares $600,000 in total dividends for the year.Which of the following is true if dividends in arrears are $30,000?
A) Preferred shareholders will receive $350,000.Common shareholders will receive $250,000.
B) Preferred shareholders will receive $60,000.Common shareholders will receive $540,000.
C) Preferred shareholders will receive $320,000.Common shareholders will receive $280,000.
D) Preferred shareholders will receive $90,000.Common shareholders will receive $510,000.
Correct Answer:
Verified
Q45: A lender may limit the ability of
Q49: A company issues 100,000 shares of preferred
Q65: A company issues 1 million shares of
Q67: A cumulative dividend preference means that:
A)preferred shareholders
Q81: The return on equity ratio is calculated
Q84: The ROE ratio measures:
A)return shareholders receive in
Q89: A corporation has 3 million shares of
Q91: All else equal,when the current price for
Q94: Preferred shareholders can anticipate receiving an annual
Q100: Under IFRS preferred shares are classified as
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents