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dsp73
2 years ago
10

The shareholders' equity of Green Corporation includes $320,000 of $1 par common stock and $510,000 par of 7% cumulative preferr

ed stock. The board of directors of Green declared cash dividends of $61,000 in 2021 after paying $31,000 cash dividends in each of 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021
Business
1 answer:
Mama L [17]2 years ago
8 0

Answer:

$25,300

Explanation:

The computation of the common shareholders received the dividend for the year 2021 is shown below:

Since in the year 2021, the dividend i.e. declared is $61,000

Now the preference shareholders dividend is

= $510,000 × 0.07

= $35,700

So for common shareholders, the dividend would be

= $61,000 - $35,700

= $25,300

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