Zale Corporation has outstanding 120,000 shares of 10 percent, $80 par-value cumulative preferred stock and 300,000...

Zale Corporation has outstanding 120,000 shares of 10 percent, $80 par-value cumulative preferred stock and 300,000 shares of no-par-value common stock.

1.1	During 2016, the corporation paid dividends of $720,000. What amount will be paid on each share of preferred stock? (Round your answer to 2 decimal places.)

1.2	During 2016, the corporation paid dividends of $720,000. What amount will be paid on each share of common stock?

2.1	During 2017, the corporation distributed dividends of $1,410,000. What amount will be paid on each share of preferred stock? (Round your answer to 2 decimal places.)

2.2	During 2017, the corporation distributed dividends of $1,410,000. What amount will be paid on each share of common stock? (Round "Common stock per share value" to 2 decimal places.)

Expert Solution

Working

	Par Value per Preferred Share	Dividend rate	Dividend per Preferred Share	No. of Preferred Shares	Preferred Dividend
*Annual Preferred Dividend:*	$ 80	10.00%	$ 8.000	120,000	$ 960,000.00

Requirement 1.1
Total dividend = $ 720000
Dividend payable to Preferred stock = $ 960000
Dividend paid to Preferred Stock = $ 720,000 [leaving $ 240000 in arrear]

Dividend per share of preferred stock = $ 720000 / 120000 shares = $ 6.00
Requirement 1.2
Total Common Stock dividend = Total Dividend – Preferred dividend
= $ 720000 – 720000 = $ 0
Common Stock dividend per share = $ 0
Requirement 2.1
Total Dividend = $ 1410000

Dividend for Preferred Stock = $ 960000 (for current year) + $ 240000 for arrear = $ 1200000
Dividend per share of preferred stock = $ 1200000 / 120000 shares = $ 10

Requirement 2.2
Common Stock dividend = $ 1410000 – 1200000 = $ 210,000

Common Stock dividend per share = $ 210000 / 300000 shares
= $ 0.70

ekkarill92 answered 1 year ago

The Scott Corporation has outstanding 10,000 shares of 10%, $50 par value, cumulative, nonparticipating preferred stock...

The Scott Corporation has outstanding 10,000 shares of 10%, $50 par value, cumulative, nonparticipating preferred stock and 80,000 shares of $10 par value common stock. The board of directors voted to distribute $45,000 as dividends in 2017, $65,000 in 2018, and $85,000 in 2019. Compute the amounts below. Total dividend paid to preferred stockholders in 2017. _____ Total dividend paid to common stockholders in 2017. _____ Total dividend paid to preferred stockholders in 2018. _____ Total dividend paid to...

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.

Sturdley Corporation has 20,000 shares of $100 par value, 7% cumulative preferred stock outstanding and 100,000...

Sturdley Corporation has 20,000 shares of $100 par value, 7% cumulative preferred stock outstanding and 100,000 of its $1 par value common stock outstanding. In their first four years of operation they paid the following cash dividends: 2016 -0- 2017 $240,000 2018 $280,000 2019 $180,000 Determine the total cash dividends paid during the four years with preferred stock as cumulative and then calculate it again with the preferred stock as non-cumulative.

The Barney company has outstanding stock as follows: 10% preferred stock 10,000 shares $10 par cumulative...

The Barney company has outstanding stock as follows: 10% preferred stock 10,000 shares $10 par cumulative and participating Common stock 60,000 shares $5 par The preferred stock is permitted to participate after common receives $1 per share. The participation is on a total par relationship. There are no arrears going into the first year. Prepare a dividend allocation schedule including a participation schedule showing total dollars and per share calculations assuming the following dividends are declared. Year 1 $0 Year...

A corporation has 1,500 shares of 10 percent, $40 par-value preferred stock and 10,000 shares of...

A corporation has 1,500 shares of 10 percent, $40 par-value preferred stock and 10,000 shares of $3 par-value common stock outstanding. If the board of the directors decides to distribute dividends totaling $38,000, the common stockholders will receive a dividend of

On January 1, Hamblin Corporation had 120,000 shares of $10 par value common stock outstanding. On...

On January 1, Hamblin Corporation had 120,000 shares of $10 par value common stock outstanding. On March 17 the company declared a 10% stock dividend to stockholders of record on March 20. Market value of the stock was $13 per share on March 17. The entry to record the transaction of March 17 would include a Group of answer choices debit to Common Stock Dividends Distributable for $120,000. credit to Stock Dividends for $36,000. credit to Cash for $156,000. credit...

Swifty Corporation has 2,000 shares of 10%, $130 par value preferred stock outstanding at December 31,...

Swifty Corporation has 2,000 shares of 10%, $130 par value preferred stock outstanding at December 31, 2020. At December 31, 2020, the company declared a $140,000 cash dividend. Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios. 1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years. The dividend paid to preferred stockholders $ The dividend paid to common stockholders $ 2. The preferred stock is...

Shiner, Inc. has 20,000 shares of 5%, $12 Par Cumulative Preferred stock outstanding and 68,000 shares...

Shiner, Inc. has 20,000 shares of 5%, $12 Par Cumulative Preferred stock outstanding and 68,000 shares of $1 Par Common Stock Outstanding. During 2020 & 2021, Shiner paid no dividends. In 2022 Shiner paid $26,500 in total dividends. Which of the following is correct? Multiple Choice In 2022, Preferred stockholders received $12,000 and Common stockholders received $14,500. In 2022, Preferred stockholders received $24,000 and Common stockholders received $2,500. In 2022, Preferred stockholders received $36,000 and Common stockholders received $0. In...

Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000 shares...

Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000 shares of $10 par value common stock. The preferred stock was issued in January 2017, and no dividends were declared in 2017 or 2018. In 2019, Nottebart declares a cash dividend of $300,000. How will the dividend be shared by common and preferred stockholders if the preferred is (a) noncumulative and (b) cumulative?

1) XYZ Corporation has outstanding 1,000 shares of $100 par, 10% preferred stock, and 6,000 shares...

1) XYZ Corporation has outstanding 1,000 shares of $100 par, 10% preferred stock, and 6,000 shares of no-par common stock. Stangeland Corp.'s balance sheets show these issues as follows: pfd: $100K common: $120K Stangeland Corporation paid out dividends for the last four years as follows: year A, $9,000 b 10,000 C 17,000 D 33000. if the preferred stock is cumulative and fully participating, the allocation of the year D dividends between preferred and common stock was select one A) $...

Question