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Bogdan [553]
3 years ago
9

Custer.com's outstanding stock is 100 shares of $100, 6% cumulative nonparticipating preferred stock, and 1,000 shares of $10 pa

r value common stock. Custer paid $2,000 cash dividends, including one-year dividends in arrears to preferred stockholders. Common stockholders received
Mathematics
2 answers:
Semmy [17]3 years ago
8 0
Common stockholders would receive $800.

(100 shares x $100) 10,000 x 6% = $600 - this is the amount paid to preferred stockholders per year. 

Since Custer.com also paid the dividend in arrear last year, $600 x 2yrs = $1,200 is the total amount paid to preferred stockholders this year. 

Cash dividends - $2,000
Preferred sh        <u>($1,200)
</u>Common sh         $ 800<u>
</u>
Mkey [24]3 years ago
5 0

Custer.com's outstanding stock is 100 shares of $100, 6% cumulative nonparticipating preferred stock, and 1,000 shares of $10 par value common stock. Custer paid $2,000 cash dividends, including one-year dividends in arrears to preferred stockholders. Common stockholders received:

$800.


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