16 0.5 points Stockholders' equity of Ernst Company consists of 94,000 shares of $5 par value, 10% cumulative preferred stock and 350,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $140,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. eBook Calculation of preferred dividend: Hint Total cash dividend To preferred shareholders Ask To common shareholders Par Value per Preferred Share Dividend Rate Dividend per Preferred Share % Number of Preferred Shares Preferred Dividend for two years
16 0.5 points Stockholders' equity of Ernst Company consists of 94,000 shares of $5 par value, 10% cumulative preferred stock and 350,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $140,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. eBook Calculation of preferred dividend: Hint Total cash dividend To preferred shareholders Ask To common shareholders Par Value per Preferred Share Dividend Rate Dividend per Preferred Share % Number of Preferred Shares Preferred Dividend for two years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:16
0.5
points
Stockholders' equity of Ernst Company consists of 94,000 shares of $5 par value, 10% cumulative preferred stock and 350,000 shares
of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any
dividends in the prior year, but it now declares and pays a $140,000 cash dividend at the current year-end.
Determine the amount distributed to each class of stockholders for this two-year-old company.
eBook
Calculation of preferred dividend:
Hint
Total cash dividend
To preferred shareholders
Ask
To common shareholders
Par Value per
Preferred
Share
Dividend
Rate
Dividend per
Preferred
Share
%
Number of
Preferred
Shares
Preferred
Dividend for
two years
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