Dividends received by the preferred stockholders in 2019 are $25,000.
<h3>
What are shares?</h3>
- Shares signify ownership in a corporation.
- An individual becomes a shareholder in your business when they purchase shares.
- Shareholders decide who manages a corporation and participate in important decisions like whether a company should be sold.
<h3>What are preferred stocks?</h3>
- A component of share capital known as preferred stock is often regarded as a hybrid instrument since it might have any combination of characteristics that common stock does not, including characteristics of both an equity and a debt instrument.
<h3>Solution -</h3>
Annual dividend paid to stakeholder = 5000\times $50\times 8% = $20,000
Dividend declared and paid in 2013 = $15,000
Preferred dividend = $20,000 -$15,000
= $5,000
No dividend will be paid to common stockholders in 2014 until all 2013 dividends and 2014 annual dividends have been paid in full, therefore there will be $60,000 in dividends declared and paid in 2014. \
Preferred stockholders will receive $5000 for the 2013 dividend and $20,000 for the 2014 dividends.
The total dividends that preferred stockholders earned in 2014 were $5,000 + $20,000 = $25,000.
Therefore, dividends received by the preferred stockholders in 2019 are $25,000.
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