Manner, Inc has 5,000 shares of 5 , $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2010 There were no dividends declared in 2009 The board of directors declares and pays a $45,000 dividend in 2010 What is the amount of divide...

d 20000 Computation of the Amount of the ...

Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of

Question:

Manner, Inc. has 5,000 shares of 5%, $100 noncumulative preferred stock and 20,000 shares of $1 outstanding at December 31, 2010. There were no dividends declared in 2009. The board of directors declares and pays a $45,000 in 2010. What is the amount of dividends received by the common stockholders in 2010?
a. $0
b. $25,000
c. $45,000
d. $20,000

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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...