1 Florida Corporation has only one class of stock There are 200,000 shares outstanding During 20X1, the corporations net income after taxes was $800,000 The policy of the corporation is to declare dividends equal to 20 percent of its net income Black owns 500 shares of the stock How much will Black receive as a dividend on these shares 2 SFC has outstanding 50,000 shares of noncumulative, 5 percent, $100 par value preferred stock and 100,000 shares of no par value common stock During 20X1, the corporation distributed dividends of $250,000 What amount will be paid on each share of preferred stock What amount will be paid on each share of common stock During 20X2, the corporation distributed dividends of $750,000 How much will be paid on each share of preferred stock How much will be paid on each share of common stock 5 Juan Joseph, the owner of a sole proprietorship, is planning to incorporate his business His capital account has a balance of $480,000 after revaluation of the assets His cash account totals $80,000 He will receive 8 percent, $100 par value preferred stock with a total par value equal to the cash page 734transferred The balance of his capital is to be exchanged for shares of $50 par value common stock with a total par value equal to the remaining capital How many shares of preferred stock should be issued to Joseph How many shares of common stock should be issued to him

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1. Florida Corporation has only one class of stock. There are 200,000 shares outstanding. During 20X1, the corporations net income after taxes was $800,000. The

1. Florida Corporation has only one class of stock. There are 200,000 shares outstanding. During 20X1, the corporations net income after taxes was $800,000. The policy of the corporation is to declare dividends equal to 20 percent of its net income. Black owns 500 shares of the stock. How much will Black receive as a dividend on these shares?

2. SFC has outstanding 50,000 shares of noncumulative, 5 percent, $100 par-value preferred stock and 100,000 shares of no-par-value common stock.

During 20X1, the corporation distributed dividends of $250,000. What amount will be paid on each share of preferred stock? What amount will be paid on each share of common stock?
During 20X2, the corporation distributed dividends of $750,000. How much will be paid on each share of preferred stock? How much will be paid on each share of common stock?

5.Juan Joseph, the owner of a sole proprietorship, is planning to incorporate his business. His capital account has a balance of $480,000 after revaluation of the assets. His cash account totals $80,000. He will receive 8 percent, $100 par-value preferred stock with a total par value equal to the cash page 734transferred. The balance of his capital is to be exchanged for shares of $50 par-value common stock with a total par value equal to the remaining capital. How many shares of preferred stock should be issued to Joseph? How many shares of common stock should be issued to him?