M11-12 Determining the Amount of a Preferred Dividend [LO 11-4] Colliers, Inc. h

Question

M11-12 Determining the Amount of a Preferred Dividend [LO 11-4] Colliers, Inc. has 101,400 shares of non-cumulative preferred stock outstanding. The preferred stock pays dividends in the amount of $2 per share, but because of cash flow problems, the company did not pay any dividends last year. The board of directors plans to pay dividends in the amount of $614,000 this year. Required: 1. What amount will go to preferred stockholders? Dividend Payment to Preferred Stockholders405,600 2. How much of the cash dividends will be available for common stockholders? Dividend Payment to Common Stockholders 208, 400

Explanation / Answer

1 Dividend payment to Preferred Stockholders 202800 =101400*2 2 Dividend payment to Common Stockholders 411200 =614000-202800

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

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