Chapter 11- Assignment 2 Question 1 fof 4) 1. 400 points value Colliers, Inc has

Question

Chapter 11- Assignment 2 Question 1 fof 4) 1. 400 points value Colliers, Inc has 100,000 shares of aumulative preferred stock outstanding. The preferred stock pays dividends in the amount of $3 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 $900,000 this year 1. What amount will go to preferred stockholders? 2. How much will be available for common stock dividends? to References eBook & Resources Worksheet Difficulity 1 Easy Check my work

Explanation / Answer

1.Dividend paid to preferred shareholders

Preferred dividend = (100000*3*2) = $600000

2. Dividend paid to common shareholders

Common dividend = (900000-600000) = $300000

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