ACC 211, Fall 2017,Exam 3 PROBLEM 3 - CORPORATIONS-27 POINTS Page 7 of 11 A. Mes

Question

ACC 211, Fall 2017,Exam 3 PROBLEM 3 - CORPORATIONS-27 POINTS Page 7 of 11 A. Mesa Corporation on began operations on lanuary 1,2015. The company issued two classes of shares of $1 par value common stock, and 5,000 shares of 6% operations stock to raise capital: 50,000 1 par value preferred stock. No dividends were paid for 2015 or 2016; that is, dividends are two years in arrears. The preferred stock is non-cumulative. If Mesa Corporation pays a total of si150,000 in cash dividends for 2017, how much of that total will go to preferred stock? (Show your work to receive full credit.) (3 points)

Explanation / Answer

30,000 Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars               2,017.00 Total Dividends          150,000.00 Dividend payable to preferred stock = 5000*6%*100             30,000.00 Remaining payable to common stock = 150,000 - 30,000          120,000.00 Note Since preferred stock is non cumulative no dividend would be paid for 2015 or 2016

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