Frostbite Cold Storage Company was incorporated early in 2007 Since then, the following stock has been outstanding:
Question:
Common stock, $20 par 10,000 shares
On December 31, 2009, the company declared and paid a total of $50,000 in dividends. This was the first dividend declared by the business. That is, until this date no dividends had been declared or paid during the first two years of operations.
If the preferred stock is cumulative, what is the most that will be available out of the $50,000 dividend for payment to the COMMON shareholders?
a. $50,000
b. $42,500
c. $30,000
d. $20,000
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Question Posted: