Refer to the shareholders ' equity of Chang Corporation in Exhibit 13 7, page 822 Answer these questions about Chang 's dividends 1 How much in dividends must Chang Corporation declare each year before the common shareholders receive cash dividends for the year 2 Suppose Chang Corporation declares ...

1 1000 shares 500 5000 2 Preferred gets 5000 Commo ...

Refer to the shareholders' equity of Chang Corporation in Exhibit 13-7, page 822. Answer these questions about

Question:

Refer to the shareholders' equity of Chang in Exhibit 13-7, page 822. Answer these questions about Chang's dividends.
1. How much in dividends must Chang declare each year before the common shareholders receive cash dividends for the year?
2. Suppose Chang declares cash dividends of $20,000 for 2014. How much of the dividends go to preferred shareholders? How much goes to common shareholders?
3. Are Chang Corporation's preferred shares cumulative or noncumulative? How can you tell?
4. Suppose Chang did not pay the preferred in 2012 and 2013. In 2014, Chang declares cash dividends of $40,000. How much of the dividends go to preferred shareholders? How much goes to common shareholders?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...