Colliers, Inc. has 105,000 shares of cumulative preferred stock outstanding. The
ID: 2468280 • Letter: C
Question
Colliers, Inc. has 105,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the amount of $3 per share, but because of cash flow problems, the company did not pay any dividends last year. The board of directors plans to pay dividends in the amount of $750,000 this year.
What amount will go to preferred stockholders?
B. How much will be available for common stock dividends?
Dividend Payment to Common Stockholders ?
A.What amount will go to preferred stockholders?
Dividend Payment to Preferred Stockholders ?Explanation / Answer
Statement showing computations Particulars Amount Total Dividend Payable 750,000.00 Total Preference Dividend Preference Dividend Payable for Current Year = 105,000*3 315,000.00 Preference Dividend Payable for Prior Year = 105,000*3 315,000.00 Total Preference Dividend 630,000.00 Amount available for common stock dividends = 750,000 - 630,000 120,000.00