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PSYCHO15rus [73]
3 years ago
7

M. Bot Corporation has 10,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No divi

dends were declared in 2020 or 2021. If M. Bot wants to pay $375,000 of dividends in 2022, what amount of dividends will common stockholders receive?
Business
1 answer:
Andru [333]3 years ago
7 0

Answer:

$135000

Explanation:

Given: Outstanding cumulative preferred stock of 10000 shares of 8% at $100

            Dividend paid= $375000.

Now, calculating preferred stock.

Preferred stock= (10000 shares\times $100\times 8\%)= \$ 80000

∴ Preferred stock= $80000

Cumulative dividend paid to shareholder= (80000\times 2 + 80000) = \$ 240000.

∴ Cumulative dividend paid to shareholder= $240000

Next, computing the amount of dividends will common stockholder receive.

Total dividend paid= $375000.  

Dividend received by common stockholder= (\textrm {Total dividend paid - cumulative dividend paid})

⇒ Dividend received by common stockholder= (375000-240000)= \$ 135000

∴ $135000 dividend will be received by common stockholder.    

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3 years ago
According to keynes what should the government do to improve economic conditions during a recession? group of answer choices
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2 years ago
When changing from the average cost method to FIFO, the company:
Lesechka [4]

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Explanation:

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An IAR has opened an account for a new customer. The customer is "on the road" for 3-4 weeks per month and has given the IAR ver
kobusy [5.1K]

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shusha [124]

Answer:

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