Question

Healthy​ Farmer, Inc. has 41 comma 000 shares of common stock outstanding and 5 comma 000 shares of preferred stock outstanding. The common stock is $ 0.08 par​ value; the preferred stock is 4​% noncumulative with a $ 100.00 par value. On October​ 15, 2019, the company declares a total dividend payment of $ 54 comma 000. What is the total amount of dividends that will be paid to the common​ stockholders?

Answer 1

Answer:

available for common stock holders 34,000

Explanation:

The common stock holders are being paid after the preferred stock.

So we must first calculate and subtract the preferred stock.

5,000 preferred stock x $100 par x 4% = 20,000

declared dividends                            54,000

preferred dividends                         (20,000)  

available for common stock holders 34,000