Can someone help with this question:
Dividends on common and preferred Stock
-Omega Inc has common and 6% preferred stock outstanding as follows
-Preferred Stock: 10,000 shares, 100 par value, cumulative
-Common Stock: 50,000 shares, $50 par value
The company declars a total dividend of $200,000. If the dividends on preferred stock are one year in arrears (in addition to the current year), how will the total dividend be divided between the common and preferred stock?

Can someone help with this question:
Dividends on common and preferred Stock
-Omega Inc has common and 6% preferred stock outstanding as follows
-Preferred Stock: 10,000 shares, 100 par value, cumulative
-Common Stock: 50,000 shares, $50 par value
The company declars a total dividend of $200,000. If the dividends on preferred stock are one year in arrears (in addition to the current year), how will the total dividend be divided between the common and preferred stock?

1) Preferred Stock:-

6% on $ 100,000 = $6,000 for one year.
So $ 12,000 fo two years.

2) Common Stock.

Total dividend declared = $200,000
Preferred stock as above = $12,000
Common stock = 200,000 - 12,000 = $188,000.
Common Stock per share = 188,000/ 50,000 = $3.76 per share.

Sorry, but didn't you drop a decimal in there somewhere?

10,000 shares x 100 par value x .06 per share = $60,000 per year

Just Looking.

Thank you so much for correcting me.

rolcam.

AMENDED VERSION !! APOLOGIES !!
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1) Preferred Stock:-

6% on $ 1,000,000 = $60,000 for one year.
So $ 120,000 fo two years.

2) Common Stock.

Total dividend declared = $200,000
Preferred stock as above = $120,000
Common stock = 200,000 - 120,000 = $80,000
Common Stock per share = $80,000/ 50,000 = $1.60 per share.