Respuesta :
Answer:
(a) $16,000
(b) $12,000
Explanation:
Given that,
Shares of common stock issued = 4,000
Shares of preferred stock issued = 500
Preferred stock is cumulative, $100 par, with an 8% dividend rate.
Total dividend declared = $28,000
(a) Dividend for the year 2015:
= shares issued × Par value × Dividend rate
= 500 × $100 × 8%
= $4,000
Arrear for the three years:
= Dividend for the year 2015 × No. of years
= $4000 × 3
= $12,000
Therefore, the dividend paid to preferred stockholder's:
= Dividend for the year 2015 + Arrear for the three years
= $4,000 + $12,000
= $16,000
(b) Dividend paid to common stockholder's:
= Total dividend paid - Dividend paid to preferred stockholder's
= $28,000 - $16,000
= $12,000
The amount paid out to the preferred shareholders is $16,000 and the amount paid out to the common shareholders is $12,000
Given Information
Shares of common stock issued = 4,000
Shares of preferred stock issued = 500
Preferred stock is cumulative, $100 par, with an 8% dividend rate.
Total dividend declared = $28,000
Calculation of amount paid to preferred shareholders
Dividend for the year 2015 = Shares issued × Par value × Dividend rate
Dividend for the year 2015 = 500 × $100 × 8%
Dividend for the year 2015 = $4,000
Arrears for the 3 years = Dividend for the year 2015 × No. of years
Arrears for the 3 years= $4000 × 3
Arrears for the 3 years = $12,000
Dividend paid to preferred stockholder = Dividend for the year 2015 + Arrear for the three years
Dividend paid to preferred stockholder = $4,000 + $12,000
Dividend paid to preferred stockholder = $16,000
Calculation of amount paid to common stockholder
Dividend paid = Total dividend paid - Dividend paid to preferred stockholder's
Dividend paid = $28,000 - $16,000
Dividend paid = $12,000
In conclusion, the amount paid out to the preferred shareholders is $16,000 and the amount paid out to the common shareholders is $12,000.
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