Question 14 1. Noble, Inc. has outstanding 10,000 shares of $40 par value, 6% no

Question

Question 14
1.
Noble, Inc. has outstanding 10,000 shares of $40 par value, 6% nonparticipating, cumulative preferred stock, and 30,000 shares of $10 par value common stock. If the dividend on preferred stock is two years in arrears, and the total cash dividend declared this year is $207,000, the total amounts distributed to preferred and common stockholders are, respectively:
Answer

A. $48,000 and $159,000

B. $51,750 and $155,250

C. $24,000 and $183,000

D. $72,000 and $135,000

E. None of the above

Explanation / Answer

preferred dividend=10000*40*6%*2=48000
total dividend=207000
common dividend=207000-48000=159000


Answer A. $48,000 and $159,000
B. $51,750 and $155,250
C. $24,000 and $183,000
D. $72,000 and $135,000
E. None of the above

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