2013 PSH: $8,000 & CSH: $0
2014 PSH: $0 & CSH: $0
2015 PSH: I don't know & CSH: I don't know too!
Sincerely,
Edwin, B.S.N.
Given: 20,000 shares cumulative preferred stock ($2.25 dividend per share): 40,000 shares common stock. Dividends paid: 2013, $8,000; 2014, 0; and 2015, $160,000.
How much will the preferred stockholders and the common stockholders receive each year?
3 answers
2013 PSH: $8,000 & CSH: $0
2014 PSH: $0 & CSH: $0
2015 PSH: I don't know & CSH: I don't know too!
Edwin G.
2014 PSH: $0 & CSH: $0
2015 PSH: I don't know & CSH: I don't know too!
Edwin G.
20000(shares)*$2.25= $45,000* 3years=$135,000
$135,000-$8000 (Paid in 2013 to preferred stock) =$127,000 is the balance for perferred stock.
Last $160,000- $127,000= $33,000 for Common stock.
$135,000-$8000 (Paid in 2013 to preferred stock) =$127,000 is the balance for perferred stock.
Last $160,000- $127,000= $33,000 for Common stock.
1 answer