Enterprise storage company has $440,000 shares of cumulative preferred stock outstanding, which has a stated dividend...

Enterprise storage company has $440,000 shares of cumulative preferred stock outstanding, which has a stated dividend of $7.75. it is six years I arrears in it's dividend payments

Expert Solution

Given, number of preference shares = 440,000

Dividend per share = $7.75

Number of years in arrear = 6

Since this is cumulative in nature, total amount of cumulative dividends would be as below:

Total amount of cumulative dividends = Number of shares × Dividend per share × Years

= 440,000 × $7.75 × 6

= $20,460,000 (Answer)

ekkarill92 answered 2 years ago

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