Question

Bronze Tint Trust has the following classes of​ stock:

Requirement 1.

Bronze Tint declares cash dividends of $28,000 for 2018. How much of the dividends goes to preferred​ stockholders? How much goes to common​ stockholders? ​(Complete all input boxes. Enter​ "0" for any zero​ amounts.)

Bronze Tint Trust hes the following classes ct stock Click the icon to view the dels) Read the recitamente Requirement 1. Brorie Tint veclare si dividends of $28.000 for 2018 How much of the dividends goes to preferred stockholders? Huw ruch you w common slockholders? (Complele all input bones Erter for any zero amounts. Bronze Tint's deadend would divided between preferred and common stockholders in this manner: Total Dividend Didend to protetted stockholders Dividend in areas Current year dividend Total dividend to preferred stockholdere Dodcrd common stackholders Requirement 2. Assume the preferred stock is cumulative and Bronze The passed the preferred dicend in 2016 and 2017. In 2018, the company declares cash didenda of 542,000. How much of the dmdend goes to protestad stockholders? How much goes to common stockholders? (Complete all input boxes Enterobrany zero amourts.) Bronze Tint's didend would be divided between praterred and common stockholders in this manner Total Dividend Dividendo preferred stockholders Dividend in arrears Current year civ dend Total dividend bo preferred stockholders Dividend to common slockholders Requirement 3. Assure the preferred slock is norcumulative and Bure Tintended the preferred dividend in 2016 and 2017. In 2018, the company declares cach dividends of 542,000. How much of the dividend goes lo preferred sluckoldes? How much goes to common stockholders? (Complete al Input boxes Enter "O" for any zero amourts.) Bronze Tinta dividend would be divided between preferred and common stockholders in this mannen Total Dividend Dividend to preferred stockholders: Dividend in areas Current year cliend Total dodand to preferred stockholders Dividend to comman stockholders

Bronze Tint​'s

dividend would be divided between preferred and common stockholders in this​ manner:

Answer 1

1) Preferred dividend= 8000*$13*5%= $5200

Total dividend		$28000
Dividend to preferred shareholders:
Dividend in arrears	0
Current year dividend	5200
Total dividend to preferred shareholders		5200
Dividend to common shareholders		$22800

2)

Total dividend		$42000
Dividend to preferred shareholders:
Dividend in arrears	10400
Current year dividend	5200
Total dividend to preferred shareholders		15600
Dividend to common shareholders		$26400

Calculation of Dividend in arrears

Dividend in arrears= Dividend of 2016+Dividend of 2017

= $5200+5200= $10400

In case of cumulative preferred shareholders, the shareholders will also receive the dividend of the past years.

3)

Total dividend		$42000
Dividend to preferred shareholders:
Dividend in arrears	0
Current year dividend	5200
Total dividend to preferred shareholders		5200
Dividend to common shareholders		$36800

In case of noncumulative preferred shareholders, shareholders will only receive the dividend of the year in which the dividend is declared means preferred shareholders will not receive the past dividends.