Answer on Economics of Enterprise Question for Dan
Preffered stock: 6%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for three prior years (2007-2009)
Common Stock: $100 par value, 2,000 shares issued and outstanding.
Total Dividends declared and paid in 2010 were $50,000. How much of the 2010 dividend will be paid to the common stockholders assuming the preferred stock is cumulative?
If preffered stock is 6% than 94% goes to Common stock. 94%*$50,000=$47,000
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!