Purchase Solution

Dividends to preferred stockholders and common stockholders

Not what you're looking for?

Ask Custom Question

The ABC Company has had 10,000 shares of 10%, $100 par-valued preferred stock and 80,000 shares of $5 stated-value common stock outstanding for the last three years. During that period, dividends paid totalled $0, $200,000, and $220,000 for each year respectively.

Compute the amount of dividends that must have been paid to preferred stockholders and common stockholders in each of the three years given the following four independent assumptions:

a) Preferred stock is nonparticipating and cumulative.

b) Preferred stock participates up to 12% of its par value and is cumulative.

c) Preferred stock is fully participating and cumulative.

d) Preferred stock is nonparticipating and noncumulative.

Purchase this Solution
Solution Summary

Computes the amount of dividends that must have been paid to preferred stockholders and common stockholders.

Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Dividend Computations

    dividends to common shareholders and preference shareholders under different scenarios.

  • Dividends on Cumulative and Fully Participating Preferred Stock

    60,000 Common Stock = 36,000+18,000=54,000 The solution explains how to calculate the amount of dividends received by preferred stockholders and common stockholders

  • Calculation of EPS, Dividend Payout and Retained Earnings

    Instructions Calculate earnings per share and return on common stockholders' equity for 2008 and 2007. (Round earnings per share to 2 decimal places and return to 1 decimal place.)

  • Aaron Burr Corporation: common stockholders and dividends

    331034 Aaron Burr Corporation: common stockholders and dividends Aaron Burr Corp. had $100,000 of 10%, $20 par value preferred stock and 12,000 shares of $25 par value common stock outstanding throughout 2007.

  • This post addresses types of stock and types of dividends.

    471782 similarities and differences between common stock and preferred stock; types of dividends 1. What are some similarities and differences between common stock and preferred stock? As a shareholder, would you want preferred or common stock?

  • Catt Corporation: Stockholders' Equity Entries, dividends,

    (Record dividends payable on preferred and common stock in separate accounts.) 2/28/03 Date of record for cash dividends on preferred and common stock. 3/15/03 Paid the cash dividend to preferred and common stockholders. 5/20/03 Declared a

  • Common stockholders

    259432 Common stockholders Folic Acid, Inc. has $20 Million in earnings, pays $2750000 interest to bondholders, and $1800000 in dividends to preferred stockholders. a. What are the common stockholders' residual claims to earnings? b.

  • Retained Earning Restrictions Statements

    Harris Corporation had net income of $230,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2010.

  • Dividend per share

    212133 Calculate the dividend per share to be received by the common stockholders this year. Fritz Corporation has 800,000 shares of preferred stock and 1,800,000 shares of common stock.

View More Related Solutions