Beagle Corporation has 23,000 shares of $10 par common stock outstanding and 17,

Question

Beagle Corporation has 23,000 shares of $10 par common stock outstanding and 17,000 shares of $100 par, 4.50% cumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $440,000 dividend will be paid. What are the dividends per share payable to preferred and common, respectively?

Beagle Corporation has 23,000 shares of $10 par common stock outstanding and 17,000 shares of $100 par, 4.50% cumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $440,000 dividend will be paid. What are the dividends per share payable to preferred and common, respectively?

Explanation / Answer

Answer D:None of the above Preference stocks 17000 shares of 100 par 4.5% cumulative stock for 2 years (17000*100*4.5%*2 years 153000 Dividend per share for preferred stocks (153000/17000) = for 2 years 9 for one year                                                                                   $ 4.5 Dividend for common stock = 440000-153000 = 287000 287000 Dividend per share for common stock (287000 /23000) $ 12.48

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