A company has outstanding 11 50 million shares of $3 50 par common stock and 1 3 million shares of $4 30 par preferred stock The preferred stock has an 11 dividend rate The company declares $330,000 in total dividends for the year Which of the following is correct if the preferred stockholders only have a current dividend preference a) Preferred stockholders will receive $36,300 or 11 of the total dividends Common stockholders will receive the remaining $293,700 b) Preferred stockholders will receive the entire $330,000, but will receive nothing more relating to this dividend declaration Common stockholders will receive nothing c) Preferred stockholders will receive the entire $330,000, and they must also be paid $143,000 sometime in the future before common stockholders will receive anything d) Preferred stockholders will receive the entire $330,000, and they must also be paid $143,000 before the end of the current accounting period Common stockholders will receive nothing

Question

A company has outstanding 11 50 million shares of $3 50 par common stock and 1 3 million shares of $4 30 par preferred stock  The preferred stock has an 11  dividend rate  The company declares $330,000 in total dividends for the year  Which of the following is correct if the preferred stockholders only have a current dividend preference  a) Preferred stockholders will receive $36,300 or 11  of the total dividends  Common stockholders will receive the remaining $293,700  b) Preferred stockholders will receive the entire $330,000, but will receive nothing more relating to this dividend declaration  Common stockholders will receive nothing  c) Preferred stockholders will receive the entire $330,000, and they must also be paid $143,000 sometime in the future before common stockholders will receive anything  d) Preferred stockholders will receive the entire $330,000, and they must also be paid $143,000 before the end of the current accounting period  Common stockholders will receive nothing

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A company has outstanding 11.50 million shares of $3.50 par common stock and 1.3 million shares of $4.30 par preferred stock. The preferred stock has

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