Purchase Solution

Preferred Dividends

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution
Solution Summary

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

Solution Preview

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

Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

IPOs

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

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

View More Free Quizzes
Related BrainMass Solutions

  • Dividend Computations

    Determine the total 2003 dividends the preferred stockholders should receive. 3. Assuming that total dividends in 2003 were $30,000 and that the preferred stock is cumulative with one year's preferred dividends in arrears on December 31, 2002.

  • Computing Dividends on Preferred Stock

    Total dividends paid $150,000 $75,000 $800,000 Preferred dividends owed currently$300,000 $300,000 $300,000 Preferred dividends unpaid

  • Dividends on Preferred Shares

    Amount of dividends to preferred share holders has been calculated.

  • Dividends on preferred and common stock

    Dividends distributed to preferred stock = 64,000 Dividends distributed to common stock = 488,000-64,000=424,000 (b) The preferred is cumulative and nonparticipating and so all fixed dividends in arrears would have to paid on preferred stock before

  • Aaron Burr Corporation: common stockholders and dividends

    that the preferred stock is fully participating and cumulative with preferred dividends in arrears for 2006, preferred stockholders should receive 2007 dividends totaling what amount?

  • Right or Attribute of Preferred Stocks

    dividend requirement if dividends on common stock exceeds dividends on preferred stock.

  • Common and Preferred Dividends

    255173 Common and Preferred Dividends See attached file.

  • Preferred Stock Cash Dividend Determination

    allocated to common and preferred stockholders under the following situations: a. $18,000 of total dividends and no preferred dividends in arrears: Total preferred dividends __________ Total common dividends ____________ b

  • Earnings per share

    Earnings per share = (Net Income - Preferred dividends)/Weighted average common shares Yearly preferred dividends = 50,000 X 2 = $100,000 Since the dividends are cumulative only the dividends for the current year for preferred stock would be considered

  • Dividends on Cumulative and Fully Participating Preferred Stock

    Since the preferred stock is fully participating, it would get extra dividends. First let us remove the dividends in arrears. The dividends on preferred stock were not paid for 2006. The dividend amount for the preferred stock is 400,000X6%=24,000.

View More Related Solutions