Question

Nu-Tek has preferred stock outstanding that pays a cumulative $1.50 dividend per quarter. This company has not paid any of its dividends for the past two quarters. How much must be paid as a dividend for each share of preferred stock if the company plans to pay a dividend to its common shareholders this upcoming quarter?
(A) $0
(B) $4.50
(C) $1.50
(D) $6.00
(E) $3.00

Answer 1

Answer:

(a) $0

Explanation:

The company has to types of Stocks the preferred and the common, it's a reason why they don't have to pay any money to the common shareholders, due that the preferred stock it's the stock that has an outstanding performance and pay every quarter $1,50, only the preferred shareholder could receive any dividend of this type of stock. It's the reason why the answer it's $0