Question 13 1. Squire, Inc., has outstanding 9,000 shares of $25 par value, 6% n

Question

Question 13
1.
Squire, Inc., has outstanding 9,000 shares of $25 par value, 6% nonparticipating, cumulative preferred stock and 16,000 shares of $5 par value common stock. If the dividend on preferred stock is two years in arrears, and the total cash dividend declared this year is $85,000, then the total amounts distributed to preferred and common stockholders, respectively, are:
Answer

A. $40,500 and $44,500

B. $13,500 and $71,500

C. $31,875 and $53,125

D. $27,000 and $58,000

E. None of the above

Explanation / Answer

preferred dividend=9000*25*6%*2=$27000
total dividend=85000
common stock dividend=85000-27000=$58000


Answer A. $40,500 and $44,500
B. $13,500 and $71,500
C. $31,875 and $53,125
D. $27,000 and $58,000
E. None of the above

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.