A company has 1,000 $50 par value, 4.5% cumulative and nonparticipating preference shares and 10,000 $10 par value ordinary shares outstanding. The company paid total cash dividends of $1,000 in its first year of operation. The cash dividend that must be paid to preference shareholders in the second year before any dividend is paid to ordinary shareholders is:

Question

Quizplus · Accepted Answer

The Answer of A company has 1,000 $50 par value, 4.5% cumulative and nonparticipating preference shares and 10,000 $10 par value ordinary shares outstanding. The company paid total cash dividends of $1,000 in its first year of operation. The cash dividend that must be paid to preference shareholders in the second year before any dividend is paid to ordinary shareholders is:

A Company Has 1,000 $50 Par Value, 4