Question

Bell Corp. has the following classes of equity: Preferred stock, $10 par, 8% dividend rate $100,000 Common stock, $1 par $50,

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Answer #1

answer: $82,000

Explanation:-

As it is clearly mentioned that prederred stock is noncumulative, they are eligible for dividend for only current year.

So dividend for preferred stock = 100000 * 8%

= $8000

Dividend for common stockholders

= 90000 - 8000

= $82,000

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