Question

Oriole Corporation has outstanding 10,500 shares of $100 par value, 6% preferred stock and 58,800 shares of $10 par value common stock. The preferred stock was issued in January 2017, and no dividends were declared in 2017 or 2018. In 2019, Oriole declares a cash dividend of $281,000. (a) Assume that the preferred are noncumulative. How much dividend will the preferred stockholders receive? Preferred stockholders would received How much dividend will the common stockholders receive? Common stockholders would received (b) Assume that the preferred are cumulative. How much dividend will the preferred stockholders receive? Preferred stockholders would received How much dividend will the common stockholders receive? Common stockholders would received

Answer 1

page=0 Answer Given details outstanding shores = 10,500 .. par value = $100 preferred stock = 60% shares = 58,800 parvatue common stock - cash dividend = $ $81,000 Required (a) How much dividend will the preferred $10 stockholders and common stock holders receive Assume that the preferred are noncumulative Preferred stock dividends = 10500 x $100*6.. = $63000 preferred stock holders would neceive = 1463000 Common stock holders would receive = cash dividenda stock holders receive - $281000-$63000 common stock holders receive = 17.218000

page:02 (6) How much dividend will the stock holders receive preferred and common Assume that the preferred are cumulative preferred stockholders would sueceive = $63000X 3 =[# 189000 common stockholders would receive = cash dividend - preferred stock holders receive $281000 - $189000 Common stock holders receive 0