Cornerstone Exercise 10-35 (Algorithmic) Preferred and Common Stock Dividends Yo

Question

Cornerstone Exercise 10-35 (Algorithmic) Preferred and Common Stock Dividends Yossarian Corporation has a single class of common stock and a single class of cumulative preferred stock. The cumulative preferred stock requires the corporation to pay an annual dividend of $3,750 to preferred stockholders. On January 1, 2011, Yossarian's preferred dividends were one year in arrears, which means that Yossarian declared neither preferred nor common dividends in 2010. During the three years (2011-2013), Yossarlan's board of directors determined they would be able to pay $5,000, $7,000, and $12,800, respectively. Show how these anticipated payments will be split between preferred and common stockholders. If an amount is zero, enter 0

Explanation / Answer

Year Amount available for dividends $ Dividends to preferred $ Dividends to common $ Remaining in arrears $ 2010                      -                             -                                -                3,750 2011               5,000                    5,000              2,500 2012               7,000                    6,250                           750                     -   2013             12,800                    3,750                       9,050                     -

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---