Explore BrainMass

Preferred Dividends

Colliers, Inc. has 200,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the amount of $2 per share, but because of cash flow problems, the company did no pay any dividends last year. The board of directors plans to pay dividends in the amount of $1million this year. What amount will go to preferred stockholders?

Solution Preview

The preferred stock holders will receive dividends for 2 years - last ...

Solution Summary

The solution explains how to calculate the amount of preferred dividends if the dividends are in arrears.