Colliers, Inc., has 100,000 shares of cumulative preferred stock outstanding. The preferred stockpays dividends in the amount of $2 per share, but because of cash flow problems, the companydid not pay any dividends last year. The board of directors plans to pay dividends in the amount of$600,000 this year. What amount will go to preferred stockholders? How much will be availablefor common stock dividends?
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Colliers, Inc., has 100,000 shares of cumulative preferred stock outstanding. The preferred stock
pays dividends in the amount of $2 per share, but because of cash flow problems, the company
did not pay any dividends last year. The board of directors plans to pay dividends in the amount of
$600,000 this year. What amount will go to preferred stockholders? How much will be available
for common stock dividends?
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