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Dividends Andrews Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par
Dividends
Andrews Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for $125 per share, and the common stock is selling for $20 per share.
Feedback c. Preferred stock is fully participating and cumulative. Preferred dividends are 1 year in arrears at the beginning of the year Andrews Company Schedule of dividends to be paid Felerred Common DiMdends in arrears 20,000 Current preferred dividends 20,000 Common proportional share Remainder Total 30,000 a000000 44,000 V $36,000 4,000 Feedback 2. For 1(a), compute the dividend yield on the preferred stock and the common stock. Dividend yield Preferred stock 8 % Common stock 121 x %
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