b. Award: 0.20 out of 1.00 point The records of HofColected the following balanc
ID: 2401960 • Letter: B
Question
b. Award: 0.20 out of 1.00 point The records of HofColected the following balances in the stockholdens' equity accountsa December 31, 2015 Common stock par $12 per share 48,000 shares outstanding Retained earnings $238,000 Onay 1,201e boant of directors was considering the d distribution of a $63500 cash dividend. No dividends were paid during 2014 and 2015 otal and per-share amounts that would be paid to the common stockhoilders and to the preferred stockholders under two independent assumptions a The prefered stock is nonoumulative (Round "Per Share" to 2 decimal places and rest to nearest dolar amount) Paid to the Prefered Stockhoilders Paid to the Common Stockholoers stock is oumulative Round "Per Share" to 2 decimul places and rest to the neare dollar amount apply) HintsBook&Resources; O Type here to searchExplanation / Answer
Answer Part 1 a) If the preference shares are non cumulative:
Answer Part 1 b) If the preference stock is cumulative:
In this case the unpaid dividends of 2014 and 2015 will be paid first and then current year dividends would be paid and the remaining, if any, would be paid to the common stockholders.
Answer Part 2 and Answer Part 3 have already been answered and marked as correct, hence, the solution for both the parts would be same as given in the image of the question.
Particulars Formula Total Per Share Paid to Preferred Stockholders 7510*15.5*0.08 9312.4 1.24 Paid to the Common Stockholders 63600-9312.4 54287.6 1.13Related Questions
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