Orleans, Inc was incorporated on January 1, 2014. Orleans issued 4,000 shares of common stock and 1,200 shares of preferred stock on that date. The preferred stock is cumulative, $100 par, with an 12% dividend rate. Orleans has not paid any dividends yet. In 2017, Orleans had its first profitable year, and on November 1, 2017, Orleans declared a total dividend of $63,000. What is the total amount that will be paid to preferred shareholders?
A) $14,400
B) $57,600
C) $13,200
D) $63,000
B .B)
Par value $100
DPS $12
No. of preferred stock x 1,200
Dividend paid to the preferred stockholders / year $14,400
Cumulative payment = [($100 x 12%) x 1,200] x 4 = $57,600
You might also like to view...
Which of the following is the adoption process stage at which the consumer considers whether trying the new product makes sense?
A) awareness B) interest C) evaluation D) adoption E) trial
The named insured leaves a suitcase filled with clothing on the seat of his unattended, unlocked automobile. The loss is valued at $900 replacement cost and a depreciated value of $700. The HO-3 contract has a $200 deductible on Section I
How much will the HO-3 contract pay for this loss? A) $0 (because the clothing was in an automobile) B) $700 C) $500 D) $0 (because the automobile was unlocked)