Fox Co. has 100,000 shares of $10 par common stock and 40,000 shares of $15 par

Question

Fox Co. has 100,000 shares of $10 par common stock and 40,000 shares of $15 par fully participating 10% cumulative preferred stock. If Fox declares cash dividends of $200,000 during the current year and there are no dividends in arrears, how much will all the preferred shareholders receive? $75,000 $57,143 $120,000 $60,000 Fox Co. has 100,000 shares of $10 par common stock and 40,000 shares of $15 par fully participating 10% cumulative preferred stock. If Fox declares cash dividends of $200,000 during the current year and there are no dividends in arrears, how much will all the preferred shareholders receive? $75,000 $57,143 $120,000 $60,000 Fox Co. has 100,000 shares of $10 par common stock and 40,000 shares of $15 par fully participating 10% cumulative preferred stock. If Fox declares cash dividends of $200,000 during the current year and there are no dividends in arrears, how much will all the preferred shareholders receive? $75,000 $57,143 $120,000 $60,000

Explanation / Answer

The correct answer is $ 60,000

Note :

Amount received by the preferred shareholders = Number of Shares * Par Value * Rate

= 40,000 Shares * $ 15 *10%

= $ 60,000

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