Green Corporation has the following stock outstanding:4% cumulative preferred stock, $20 stated value$ 400,000Common stock, $12 par2,400,000During the current year, Green paid $100,000 in dividends. No dividends were paid in the two previous years.Required:a) Compute the total amount of dividends that was paid to each class of stock in the current year.b) Compute the amount of dividends per share for each class of stock
What will be an ideal response?
a) To preferred shareholders: 3 years × 4% × $400,000 = $48,000
To common shareholders: $100,000 - $48,000 = $52,000
b) Number of shares of preferred stock = $400,000 ÷ $20 stated value = 20,000 shares
$48,000 ÷ 20,000 shares = $2.40 preferred dividend per share
Number of shares of common stock = $2,400,000 ÷ $12 par value = 200,000 shares
$52,000 ÷ 200,000 shares = $0.26 common dividend per share
You might also like to view...
Barbara Corcoran wrote the book, Shark Tales: How I Turned $1,000 into a Billion Dollar Business. According to her, what did she do to recruit and attract the best real estate agents to join her firm?
a. She paid much higher commissions than the other agencies b. She set easy goals for the employees and herself c. She painted ads for new agents on the sides of buildings she managed d. She created a fun atmosphere by holding theme parties and social events
____________________ reasoning typically takes an argument from general observations or premises to a specific conclusion.
Fill in the blank(s) with the appropriate word(s).
Designing a new backpack at an outdoor sports equipment company is an example of a:
A. Batch-level activity. B. Product-level activity. C. Facility-level activity. D. Unit-level activity.
A warehousing approach whereby large shipments come in and are broken down into smaller shipments to several locations is known as ________.
Fill in the blank(s) with the appropriate word(s).