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Dividend declaired $72,000 for common stock, how much to pay for arrears on preferred
8% preferred stock $100.00 pv 4000 shares $400,000.00
common stock $10.00 pv 10000 shares $600,000.00 retained earnings $500,000.00 Company declaired dividends for common stock of $72,000 as of 12/31/11. Preferred stock is cumulative and participating and has dividends iin arrears for 2009. Calculate the total divident that will have to be paid to preferred shareholders. |
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