Dividends and Dividend Preferences Video Lessons

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Problem: A Company has 4,000 shares of 5 percent, $100 par-value preferred stock and 50,000 shares of $2 par-value common stock outstanding. If the board of the directors decides to distribute dividends totaling $100,000, the common stockholders will receive a dividend of a. $1.00 a share b. $1.60 a share c. $2.00 a share d. $2.40 a share

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Problem Details

A Company has 4,000 shares of 5 percent, $100 par-value preferred stock and 50,000 shares of $2 par-value common stock outstanding. If the board of the directors decides to distribute dividends totaling $100,000, the common stockholders will receive a dividend of

a. $1.00 a share

b. $1.60 a share

c. $2.00 a share

d. $2.40 a share

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