[Cynbad2]

Mega, Inc. has common and 6 percent preferred stock outstanding as follows:
Preferred stock: 10,000 shares, $100 par value, cumulative
Common stock: 50,000 shares, $50 par value
The company declares 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?

[pready]

First you will have to calculate the dividends on your Preferred stock for the previous year and the current year. Par value of the Preferred stock * your percentage * number of shares outstanding = dividends on Preferrend Stock for one year * 2 = Total Preferred Dividends.

Total dividends - Total Preferred Dividends = Dividends available to Common Stockholders.

Dividends available to Common Stockholders / number of Common Stock shares outstanding = Dividends per share of common stock.