Owl Co. issued 200,000 shares of $20 par common stock and 10,000 shares of $100
ID: 2511068 • Letter: O
Question
Owl Co. issued 200,000 shares of $20 par common stock and 10,000 shares of $100 par 8% cumulative preferred stock. If Owl declares current year dividends of $300,000 when there are $50,000 of dividends in arrears, how much will common shareholders receive? $170,000 $130,000 $270,000 $220,000 Owl Co. issued 200,000 shares of $20 par common stock and 10,000 shares of $100 par 8% cumulative preferred stock. If Owl declares current year dividends of $300,000 when there are $50,000 of dividends in arrears, how much will common shareholders receive? $170,000 $130,000 $270,000 $220,000 Owl Co. issued 200,000 shares of $20 par common stock and 10,000 shares of $100 par 8% cumulative preferred stock. If Owl declares current year dividends of $300,000 when there are $50,000 of dividends in arrears, how much will common shareholders receive? $170,000 $130,000 $270,000 $220,000Explanation / Answer
Answer is $170,000
Explanation:
Total Dividend declared: $300,000
Less: Prefered dividend (1000,000*8%): $80,000
Less: Dividend arrears $50,000
Dividend to Common Stockholders: $170,000
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