Classic Cars Corp. has 50,000 shares of $ 10 par common stock and 20,000 shares of $

Question:

Classic Cars Corp. has 50,000 shares of $ 10 par and 20,000 shares of $ 15 par fully participating 10% cumulative preferred stock. If the company declares cash dividends of $ 100,000 during the current year and there are no dividends in arrears, what will be the total payment to preferred shareholders?
a. $ 37,500
b. $ 42,500
c. $ 57,500
d. $ 62,500 Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...