Answer:
- What are the dividends received by the preferred stockholders in 2020?
$ 16.200 Preferred Stockholers
Explanation:
Cash Dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends
Preferred Stock: The stocks that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common sotckholders is referred as preferred stock holders
.
It means that if the previous year was not enough money to paid preferred dividends, then the difference, between what was paid and what are the preferred dividends, accumulates to the following year.
Total Dividends to Preferred Stockholders
8.000 Shares
6,0%
$20 Par Value
Total Preferred Dividends: 8,000 * 6% * $20 = $ 9.600
Preferred dividends for preferred stock.
$ 9.600
Total Dividends to be paid by the company each year
2019 2020
$ 3.000 $ 32.000 Dividend declared and paid.
$ 3.000 $ 16.200 Dividends of Preferred Stockholders ($9,600+
-$ 6.600 (3,000 - 9,600)
(Dividends to be paid next year because the dividends of paid in 2019 was not enough.)
$ 16.200 ==> $9,600 (current year 2020) + $6,600 ( arrears of the previous year)
