Question

Brief Exercise 11-07 X Your answer is incorrect. Try again. Swifty Corporation has 10,500 shares of 7%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No dividends were declared in 2020 or 2021. If Swifty wants to pay $400,000 of dividends in 2022, what amount of dividends will common stockholders receive? Dividends allocated to common stock $.....

Answer 1

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Swifty Corporation	Amount $	Note
Number of Preference Shares	10,500.00	A
Par Value	100.00	B
Total value of Preference Shares	1,050,000.00	C=A*B
Preference Dividend rate	7%	D
Annual Preference Dividend	73,500.00	E=C*D
Preference Dividend- 2020	73,500.00	See E
Preference Dividend- 2021	73,500.00	See E
Preference Dividend- 2022	73,500.00	See E
Total Preference Dividend Payable	220,500.00	F
Total Dividend declared	400,000.00	G
Dividend allocated to Common Stock	179,500.00	H=G-F