Dividends and Dividend Preferences Video Lessons

Concept

# Problem: G Company has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. G Company also has$600,000 of common stock outstanding. During its first year, the company paid cash dividends of $30,000. This dividend should be distributed as follows: a.$12,000 preferred; $18,000 common. b.$30,000 preferred; $0 common. c.$6,000 preferred; $24,000 common. d.$15,000 preferred; $15,000 common. ###### FREE Expert Solution ###### Problem Details G Company has$200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. G Company also has $600,000 of common stock outstanding. During its first year, the company paid cash dividends of$30,000. This dividend should be distributed as follows:

a. $12,000 preferred;$18,000 common.

b. $30,000 preferred;$0 common.

c. $6,000 preferred;$24,000 common.

d. $15,000 preferred;$15,000 common.

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