Share
Explore BrainMass

# Cash Dividends Paid

Calculate the cash dividends required to be paid for each of the following preferred stock issues:

(a)
The semiannual dividend on 9% cumulative preferred, \$62 par value, 6,500 shares authorized, issued, and outstanding.

Semi-annual dividend \$ ________

(b)
The annual dividend on \$3.25 cumulative preferred, 50,000 shares authorized, 30,000 shares issued, 26,500 shares outstanding. Last year's dividend has not been paid.

Cumulative dividend \$ ________

(c)
The quarterly dividend on 12.0% cumulative preferred, \$90 stated value, \$108 liquidating value, 42,000 shares authorized, 36,400 shares issued and outstanding. No dividends are in arrears.

Quarterly dividend \$ _________

#### Solution Preview

(a)
The semiannual dividend on 9% cumulative preferred, \$62 par value, 6,500 shares authorized, issued, and outstanding.

Semi-annual dividend \$18,135

Semi-annual dividend = (Annual dividend rate*par value*shares outstanding)/2
Semi-annual dividend = (.09*\$62*6,500)/2
Semi-annual ...

#### Solution Summary

This solution discusses and illustrates how much in cash dividends are payable in different situations.

\$2.19