Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

B) must be Problem 2 The shareholders years of operation- 2015, 2016, and 2017,

ID: 2594356 • Letter: B

Question

B) must be Problem 2 The shareholders years of operation- 2015, 2016, and 2017, respectively. of directors of BSowC declared cash dlvidends of $ 20,00o, $ 42,000, and $ 90,000 equity of Brown Spots on The White Chair includes the items shown below. The board IS in Thousands) Common stock Paid- in capital-excess of par, common Preferred stock, 12% cumulative, nonparticipating Paid- in capital-excess of par, preferred $100 980 350 Requirement 1: shareholders in each of the Determine the amount of dividends to be paid to preferred and common three years. 2015 Requirement 2: Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years if the, Preferred stock, 12%, noncumulative, nonparticipating, non voting was issued by BSoWP Common Preferred 2015 2016 2017

Explanation / Answer

Requirement 1 : Dividend distribution :

Preferred dividend per year = 350000*12% = 42000

Requirement 2 : Dividend distribution :

Preferred dividend per year = 350000*12% = 42000

Year Preferred Common 2015 20000 2016 42000 2017 64000 26000