This Question: 1 pt 4 of 10 (0 complete) Thi Preferred dividends in each case in

Question

This Question: 1 pt 4 of 10 (0 complete) Thi Preferred dividends in each case in the tolowing table. EEB. how many dollars of preterred dividends per share must be paid to preterred stockholders before common stock dividends are por The amount of prederred dividends that must be paid in Case A before common dividends are paid is The amount of preterred dvidends that must be paid in Case B before common avidends are paid iRound to the nearest cent) The amount of preterned dvidends that must be pais n Case C before common dvidends are paidRound to the nearest cent)Cck on the icon located on the The amount of prefened dvidends that must be paid in Case D before common dividends are paid iss(Round to the nearest cent) The amount of preterred avidends that must be paid in Case E before common dividends are paid is slound to the nearest cent)as munst be paid in Case A betore common dividends are paidRound to the nearest cent Data Tabe topoght corner ofthe data tatio beow ?? or toco ts contents into a spreadsheet Dividend per share per period dividends passed periods of Par value $140 560 550 $90 20% $0 90 30% D Cumulative Cumulative

Explanation / Answer

Cumulative Preferred Shares: For cumulative preferred shares if the dividend is not paid in earlier year than the arrears of dividend will be accumulated till the dividend is not paid to preferred shares holders. Noncumulative Preferred Shares: In type of shares if the dividend is not paid in any earlier year than that dividend will be gone it means only current year dividend will be paid. Remarks Case A : Answer = Dividend per shares = $ 11 per common shares There is no outstanding so no cumulation Case B : Dividend per shares = $140 X 2% = 2.8 There is outstanding of old dividend but no payment is made Case C : Answer = Dividend per shares = $ 0.90 per common shares There is outstanding of old dividend but no payment is made Case D: Dividend Per shares = $ 50 X 3 % = $       1.50 Arreas : Dividend Passes 6 years X $ 1.50 = $       9.00 Total $    10.50 Case E: Dividend Per shares = $ 90 X 4.5 % = $       4.05 Arreas : Dividend Passes 4 years X $ 4.05 = $    16.20 Total $    20.25

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