Happy Farmer, Inc has 44,000 shares of common stock outstanding and 3,000 shares of preferred stock outstanding
The common stock is $0.08 par value; the preferred stock is 8% noncumulative with a $100.00 par value. On October 15, 2017, the company declares a total dividend payment of $56,000. What is the total amount of dividends that will be paid to the common stockholders?
A) $56,000
B) $32,000
C) $3,520
D) $24,000
B .B) Dividend paid to the common stockholders = $56,000 - [($100.00 x 8%) x 3,000] = $32,000
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