Stockholders equity of STIX Company consists of 75,000 shares of $5 par value, 8 cumulative preferred stock and 200,000 shares of $1 par value common stock Both classes of stock have been outstanding since the companys inception STIX did not declare any dividends in the prior year, but it now decla...

Total cash dividend 108000 To ...

Stockholders equity of STIX Company consists of 75,000 shares of $5 par value, 8% cumulative preferred stock

Question:

Stockholders’ equity of STIX Company consists of 75,000 shares of $5 8% cumulative preferred stock and 200,000 shares of $1 common stock. Both classes of stock have been outstanding since the company’s inception. STIX did not declare any dividends in the prior year, but it now declares and pays a $108,000 cash at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company.

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,...