Preferred Stock- 5% $11 Par Value 5,500 shares authorized 4,000 shares issued an
ID: 2396738 • Letter: P
Question
Preferred Stock- 5% $11 Par Value 5,500 shares authorized 4,000 shares issued and outstanding
Common Stock - $.20 Par Value 2,000,000 shares authorized, 1,650,000 shares issued and outstanding
Requirement 1.
Sapphire declares cash dividends of $28,000 for 2018.
How much of the dividends goes to preferred? stockholders? How much goes to common? stockholders? ?(Complete all input boxes. Enter? "0" for any zero? amounts.)
Sapphire dividend would be divided between preferred and common stockholders in this? manner:
Total Dividend
Dividend to preferred stockholders:
Dividend in arrears
Current year dividend
Total dividend to preferred stockholders
Dividend to common stockholders
Requirement 2. Assume the preferred stock is cumulative and Sapphire passed the preferred dividend in 2016 and 2017
In 2018 the company declares cash dividends of $35,000.
How much of the dividend goes to preferred? stockholders? How much goes to common? stockholders? ?(Complete all input boxes. Enter? "0" for any zero? amounts.)
Sapphire dividend would be divided between preferred and common stockholders in this? manner:
Total Dividend
Dividend to preferred stockholders:
Dividend in arrears
Current year dividend
Total dividend to preferred stockholders
Dividend to common stockholders
Requirement 3. Assume the preferred stock is noncumulative and Sapphire passed the preferred dividend in 2016 and 2017
In 2018 the company declares cash dividends of $35,000.
How much of the dividend goes to preferred? stockholders? How much goes to common? stockholders? ?(Complete all input boxes. Enter? "0" for any zero? amounts.) Sapphire dividend would be divided between preferred and common stockholders in this? manner:
Total Dividend
Dividend to preferred stockholders:
Dividend in arrears
Current year dividend
Total dividend to preferred stockholders
Dividend to common stockholders
Total Dividend
Dividend to preferred stockholders:
Dividend in arrears
Current year dividend
Total dividend to preferred stockholders
Dividend to common stockholders
Explanation / Answer
Answers
No.
Par Value
Amount
Per Year dividend
[A]
[B]
[C = A x B]
[D = C x 5%]
Preferred Stock issued
4000
$ 11.00
$ 44,000.00
$ 2,200.00
Requirement 1
A
Total Dividend
$ 28,000.00
Dividend to preferred Stockholders:
B
Dividend in Arrears
$ -
C
Current Year dividend
$ 2,200.00
D = B+C
Total dividend to preferred stockholders
$ 2,200.00
E = A - D
Dividend to common stockholders
$ 25,800.00
Requirement 2
A
Total Dividend
$ 35,000.00
Dividend to preferred Stockholders:
B
Dividend in Arrears [2200 + 2200]
$ 4,400.00
C
Current Year dividend
$ 2,200.00
D = B+C
Total dividend to preferred stockholders
$ 6,600.00
E = A - D
Dividend to common stockholders
$ 28,400.00
Requirement 3
A
Total Dividend
$ 35,000.00
Dividend to preferred Stockholders:
B
Dividend in Arrears
$ -
C
Current Year dividend
$ 2,200.00
D = B+C
Total dividend to preferred stockholders
$ 2,200.00
E = A - D
Dividend to common stockholders
$ 32,800.00
No.
Par Value
Amount
Per Year dividend
[A]
[B]
[C = A x B]
[D = C x 5%]
Preferred Stock issued
4000
$ 11.00
$ 44,000.00
$ 2,200.00