Question

Ayayal Corp. has 4,200 shares of 8%, $100 par value preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a $128,000 cash dividend. Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios. 1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years. The dividend paid to preferred stockholders $ The dividend pald to common stockholders $ 2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years. The dividend pald to preferred stockholders $ The dividend paid to common stockholders $ 3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders $ The dividend paid to common stockholders $

Answer 1

Total 420000 Current Stock Out-Standing Shares Preferred Stock 8% @$100 4200 Compute the Annual Dividend on Preferred Stock Preferred Stock Dividend (420000*8%) 8% Divdidend Arraers to Preferres Stock 2 Years Total Dividend 128000 33600 67200 Answers Preferred Stock is Non-Cumulative and not missed any dividned 1 Dividend Paid to Preferred stockholders 33600 Dividend Paid to Common Stock holders 94400 Preferred Stock is Non-Cumulative and not missed Two Years Dividend 2 Dividend Paid to Preferred stockholders 33600 | Dividend Paid to Common Stock holders 94400 Preferred Stock is Cumulative and not missed Two Years Dividend 3 Dividend Paid to Preferred stockholders (33600+67200) 100800 Dividend Paid to Common Stock holders 27200