ABC Company began operations in January, 2017, by issuing 8,500 shares of 8%, cumulative, $64 par value preferred stock...
ABC Company began operations in January, 2017, by issuing 8,500 shares of 8%, cumulative, $64 par value preferred stock and 16,000 shares of $5 par value common stock. ABC Company paid $36,000 of dividends in 2017, they paid $44,000 of dividends in 2018, they paid $50,000 of dividends in 2019, they paid $28,000 of dividends in 2020, and they paid dividends of $62,000 in 2021. Calculate the amount of the $62,000 dividend paid in 2021 that was paid to common stockholders.
Homework Answers
Annual preferred dividend = 8500*64*8% = 43520
| Year | Total | Preferred dividend | Common dividend |
| 2017 | 36000 | 36000 | 0 |
| 2018 | 44000 | 44000 | 0 |
| 2019 | 50000 | 50000 | 0 |
| 2020 | 28000 | 28000 | 0 |
| 2021 | 62000 | 59600 | 2400 |
So Answer is $2400
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