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2010accounting
Jul 18, 2009, 09:44 AM
If a company has declared $1,125,000 in dividends how do you calculate the distribution?
100,000 shares of common stock outstanding
25,000 shares of prederred stock outstanding
dividens on preferred $2.50 per share
par value for common is $2.00
par value for preferred is $10.00 per share
morgaine300
Jul 19, 2009, 01:01 AM
Look at that information and think about it. It's telling you exactly what the preferred shareholders are getting: $2.50 per share. Figure out what that is. And if that's what preferred gets, then what's left for common?