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    2010accounting's Avatar
    2010accounting Posts: 1, Reputation: 1
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    #1

    Jul 18, 2009, 09:44 AM
    dividends declared
    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    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?
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