Nguyen Company has the following stock outstanding: Common Stock Preferred Stock 60,000 shares ......5,000 shares $1 par

Question:

Nguyen Company has the following stock outstanding:

Common Stock Preferred Stock

60,000 shares ......5,000 shares

$1 par value .......$60 par, $3 dividend

The amount available for dividends this year is $57,000. Prepare the dividend allocation between the preferred and common shares in total and per share.

Situation 2 Bell Company has the following stock outstanding:

Common Stock Preferred Stock

60,000 shares .......Cumulative: 2,000 shares

$1 par value .......$50 par, $2 dividend

Noncumulative: 3,000 shares

$50 par, $2 dividend

No dividends were declared in year 1 of operation. In year 2, there is $38,000 avail- able for dividends. Prepare the dividend allocation between the preferred and common shares in total and per share.

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,...