0.00 points Calculate the annual cash dividends required to be paid for each of
ID: 2522000 • Letter: 0
Question
0.00 points Calculate the annual cash dividends required to be paid for each of the following preferred stock issues Required: a. $3.60 cumulative preferred, no par value; 290,000 shares authorized, 132,000 shares issued. (The treasury stock caption of the stockholders' equity section of the baiance sheet indicates that 40.582 shares of this preferred stock issue are owned by the company) (Round your answer to 2 decimal places.) b 5%, s30 par value preferred. 218,000 shares autorzed 163,000 shares issued, and 73,095 shares outstandng.(Round your answer to 2 decimal places. c. 11.8% cumulati e preferred. SS0 stated value, saz 'quidatng value, 64,000 shares autorted. 45000 shares ssued. 30,000 shares outstr dng. MacBook Ar 8- 6 8 9 3 4 5Explanation / Answer
Answer a
Annual dividends = (Shares issued - Treasury stock) * per share dividends
= (132,000 - 40,582) * $3.60 = 91,418 * $3.60 = $329,104.80
Answer b
Annual dividends = Shares outanding * Par value * Preferred dividends %
= 73,095 * $30 * 5 % = $109,642.50
Answer c
Annual dividends = Shares outanding * Stated value * Preferred dividends %
= 30,000 * $90 *11.8 % = $318,600
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