Alpha-Omega Industries has 20,000 shares of $10 par common stock and 10,000 shares of $40 par, 5% preferred stock outstanding
Total dividends available are $62,000. Compute the dividends to be distributed to preferred and common stockholders under the following condition.
The preferred stock is nonparticipating and non-cumulative with no dividends distributed last year.
What will be an ideal response?
Answer: Preferred Stock: $40 par × 5% × 10,000 shares = $20,000
Common Stock: $62,000 - $20,000 = $42,000
You might also like to view...
In the Cabela's case study, what types of models helped the company understand the value of customers, using a five-point scale?
A) reporting and association models B) simulation and geographical models C) simulation and regression models D) clustering and association models
The Electronic Signatures in Global and National Commerce Act:
A) makes electronic records and signatures valid and enforceable across the United States for many types of transactions affecting interstate commerce. B) excludes all transactions covered under the UCC. C) was enacted by all the states after being promulgated as a uniform act. D) defines an "electronic agent" as a true agent.