Question

Weaver Corporation had the following stock issued and outstanding at January 1, Year 1. 1. 121,000 shares of $12 par common stock. 2.6,500 shares of $150 par, 6 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 6,500 shares of preferred stock and a $5 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. $ 58,500 Preferred stock Common stock

Answer 1

1. Dividend payable to preferred stock is,

Dividend per share = 150 x 6% = 9,

Total dividend = 6500 x 9 = 58,500.

2. Dividend payable on common stock,

Dividend per share = 5,

Total dividend = 121,000 x 5 = 605,000.

Answer 2

Weaver Corporation had the following stock issued and outstanding at January 1, 2018:

 

1. 117,000 shares of $15 par common stock.

2. 8,000 shares of $90 par, 6 percent, noncumulative preferred stock.

 

On June 10, Weaver Corporation declared the annual cash dividend on its 8,000 shares of preferred stock and a $4 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20.

 

Required:

Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders.