Question 2 (of 4) Save&Exit; Sbm 2.50 points Colliers, Inc. has 101,600 shares o

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Question 2 (of 4) Save&Exit; Sbm 2.50 points Colliers, Inc. has 101,600 shares of non-cumulative prefemed stook 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 $816,000 this year outstanding. The preferred stock pays Required: 1. What amount will go to preferred stockholders? 2 How much of the cash dividends will be available for common stockholders? References Book & Resources Learning Oojective 11-04 Describe the charactonstics of enlyze bransactions affecting prefermed slock Difficulty: 1 Easy Check my. work

Explanation / Answer

As preference shareholders are non cummulative they are eligile to get only current year dividend i.e 101600*2=203200

dividend for common stakeholders = 616000-203200=412800

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