Andrews company has $80,000 available to pay dividends. It has 2000 shares of 10%, $100 par, preferred stock and $20,000 shares of $10 par common stock outstanding. The preferred stock is selling for $125 per share, and the common stock is selling for $20 per share. The question is in the photo attachment
Andrews company has $80,000 available to pay dividends. It has 2000 shares of 10%, $100 par,
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Dividend is paid to the shareholders of the company. The preferred shareholders receives the dividend at a fixed rate and before the common shareholders. The common shareholders receives dividend once the dividend has been distributed to preferred shareholders. There is no fixed rate of dividend that is paid to common shareholders.
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