Texislo Corporations had been incorporated for 30 years. Its current paid on cap

Question

Texislo Corporations had been incorporated for 30 years. Its current paid on capital is shown to the right. Tasks has been expanding its corporations; its board of direction declared a small dividend of $2,000 in 20th and as of dividend in 2010. The experience was a sucren, and profits have increased. On December 6, 2011, the board of directors declared a dividend of $316,500 to stockholders on record at December 23, 2011, to be paid on December 30, 2011. Determine the annual preferred dividend, assuming the number of shares of preferred stock issued and outstanding has not changed for the past three years: How much dividend is in arrears for 2009? How much dividend is in arrears for 2010? Use the information in the above table and calculated to the above to complete the table below to illustrate the distribution of the 2011 dividend.

Explanation / Answer

1. If the Preferred stock is cumulative, then the dividend is due for both the years 2009 and 2010

Dividend per share = Dividend / Average outstanding common shares = 308,000 / 150,000 = $2.05 per share

Dividend due for 2009 (3,500-2,000)                       1,500 Dividend due for 2010                       3,500 Total dividend due in arrears                       5,000

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