Cash Dividends At December 31, 2010, Black Company has the following: Common Stock, $10 par, 10,000 shares

Question:

Cash Dividends At December 31, 2010, Black Company has the following: Common Stock, $10 par, 10,000 shares authorized, 9,000 issued, 8,000 outstanding Preferred Stock, $100 par, 8%, cumulative, 1,000 shares authorized, issued, and outstanding The company did not pay any during 2009 or 2008.

Required
Compute the amount of to be received by the common and preferred stockholders in 2010 if the company declared a of
(a) $16,000,
(b) $24,000, and
(c) $60,000.

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...