Question 29 Wildhorse Corp. had $100,000 of 7%, s20 par value preferred stock an

Question

Question 29 Wildhorse Corp. had $100,000 of 7%, s20 par value preferred stock and 12,000 shares of $25 par value common stock outstanding throughout 2017 Your answer is incorrect. Try again. Assuming that total dividends declared in 2017 were $64,000, and that the preferred stock is not cumulative but is fully participating, common stockholders should recelve 2017 dividends of what amount? Common stockholders should receive 21 TO TEXT 3 Your answer is incorrect. Try again. Assuming that total dividends declared in 2017 were $64,000, and that the preferred stock is fully participating and cumulative with preferred dividends in arrears for 2016, preferred stockholders should receive 2017 dividends totaling what amount? Preferred stockholders should receive

Explanation / Answer

a) Common stock holders will receive the balance after payment of the Preferred Dividend of $ 100000×7% = $7000

Therefore Common stock holders should receive (64000-7000) = $57,000

b) As the Preferred stock is Cumulative they should receive the dividend of the last year and the current year both which is (7000+7000) = $14,000

c) Common stockholders should receive (30000-7000-2000) = $ 21,000

Thank You..!!

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