Coronado Industries, has 16000 shares of 4%, $100 par value, cumulative preferred stock and 61000 shares...

Coronado Industries, has 16000 shares of 4%, $100 par value, cumulative preferred stock and 61000 shares of $1 par value common stock outstanding at December 31, 2021. There were no dividends declared in 2019. The board of directors declares and pays a $108000 dividend in 2020 and in 2021. What is the amount of dividends received by the common stockholders in 2021?

$24000

$108000

$64000

Solutions

Expert Solution

Answer B. $24,000

Since cumulative preference shareholders get the arrears dividend also, common stockholder will get any dividend, once all outstanding dividend of cumulative preference shareholders are settled.

Since in 2019 company has not paid any dividend, one year preference shares dividend would be outstanding.

Yearly dividend on Preference shares :-

A.	No of Preference Shares	16000
B.	Par value	$100
C.	Total paid up (A*B)	$1,600,000
D.	Rate of dividend	4%
E.	Dividend ( Yearly) (C*D)	$64,000

Year 2019 Dividend Outstanding for Preference shareholders - $64,000

Year 2020 Dividend Outstanding for Preference shareholders - $20,000

A.	Dividend Paid in year 2020	$108,000
B.	Preference shares dividend outstanding for 2019	$64,000
C.	Amount available for year 2021 (A-B)	$44,000
D.	Yearly preference shares dividend	$64,000
E.	Preference shares dividend outstanding 2020 (C-D)	$20,000

Year 2021 Dividend Outstanding for Preference shareholders - NILL

A.	Dividend Paid in year 2021	$108,000
B.	Preference shares Dividend outstanding for year 2020	$20,000
C.	Amount available for year 2021 (A-B)	$88,000
D.	Preference shares Dividend outstanding for year 2021	$64,000
E.	Remaining amount available for common Stockholders share (C-D)	$24,000

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Marigold Corp., has 14200 shares of 4%, $100 par value, cumulative preferred stock and 59900 shares...

Marigold Corp., has 14200 shares of 4%, $100 par value, cumulative preferred stock and 59900 shares of $1 par value common stock outstanding at December 31, 2018. There were no dividends declared in 2016. The board of directors declares and pays a $117000 dividend in 2017 and in 2018. What is the amount of dividends received by the common stockholders in 2018? 0 $117000 $63600 $56800

Anders, Inc., has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 40,000 shares...

Anders, Inc., has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding on December 31, 2018. There were no dividends declared in 2016. The board of directors declares and pays dividends of $90,000 each in 2017 and in 2018. What is the dividends per share received by the common stockholders in 2018? Group of answer choices $1.00 $1.25 $0.75 $1.75

Anders, Inc., has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 40,000 shares...

Pharoah company has 6500 shares of 5%, $100 par value, cumulative preferred stock and 13000 shares...

Pharoah company has 6500 shares of 5%, $100 par value, cumulative preferred stock and 13000 shares of $1 par value common stock outstanding in december 31,2020. There were no dividends declared in 2018. The board of directors declares and pays a $61100 dividend in 2019 and in 2020. what is the amoun of dividends recieved by the common stock holders in 2020.

Oceanic Company has 25,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of...

Oceanic Company has 25,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $30 par common stock. The following amounts were distributed as dividends: Year 1 - $50,000, Year 2 - $12,500, Year 3 - $75,000. Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of...

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for the first year

Sandpiper Company has 15,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of...

Sandpiper Company has 15,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: Year 1 $37,500 Year 2 12,000 Year 3 45,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Year 1 Year 2 Year 3 Preferred stock (Dividends per share) $ $ $ Common stock (Dividends...

Mendez Corporation has 10,000 shares of its $100 par value, 7 percent cumulative preferred stock outstanding...

Mendez Corporation has 10,000 shares of its $100 par value, 7 percent cumulative preferred stock outstanding and 50,000 shares of its $1 par value common stock outstanding. In Mendez’s first four years of operation, its board of directors paid the following cash dividends: 2011, none; 2012, $120,000; 2013, $140,000; 2014, $140,000. Determine the dividends per share and total cash dividends paid to the preferred and common stockholders during each of the four years.

Coronado Industries has issued 2,300 shares of common stock and 460 shares of preferred stock for...

Coronado Industries has issued 2,300 shares of common stock and 460 shares of preferred stock for a lump sum of $87,000 cash. Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock. Give the entry for the issuance...

#1 Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares...

#1 Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for the THIRD year. a. $3.25 and $0.25 b. $4.50 and $0.90 c. $4.50 and $0.25 d. $2.00 and $0.25 #2 Alma Corp. issues 1,790 shares of $12 par common stock at $17...

Subjects