Question1 2.5 pts XYZ Company began operations in January, 2019, by issuing 4,00

Question

Question1 2.5 pts XYZ Company began operations in January, 2019, by issuing 4,000 shares of 6%, cumulative, $50 par value preferred stock and 11,000 shares of $12 par value common stock. XYZ Company paid $15,000 of dividends in 2019, they paid $4,000 of dividends in 2020 and $15,000 of dividends in 2021. In 2022, XYZ Company paid $50,000 of dividends to its stockholders. Calculate the amount of the $50,000 dividend paid in 2022 that was pa id to common stockholders. Do not use decimals in your answer.

Explanation / Answer

Annual preferred dividends = 4000*50*6%= 12000 Arrear preferred dividends as on 2022 = (12000-4000)-(15000-12000)=5000 dividends paid to preferred shareholders in 2022 = 12000+5000 = 17000 Dividend paid to common shareholders = 50000-17000 = 33000

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