Explore BrainMass
Share

Explore BrainMass

    Preferred Dividends

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com April 1, 2020, 12:16 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/preferred-dividends-71917

    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.

    $2.19