Please give me correct answer this financial accounting question In 2014, the board of directors of Frosty Cakes Inc.declared total dividends of $55,000. The company has1,800 shares of 3%, $90 par preferred stock. There are nodividends in arrears.How much of the $55,000 will be paid to preferredshareholders and how much will be paid to commonshareholders?

Step 1: Define Preferred DividendsPreferred Dividends refer to the fixed amount of dividends that a…

Answered: In 2014, the board of directors of…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 4CP

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As of 2017, Buttle Corp. has $10 par, 2% preferred stock, 13,000 shares outstanding, and $1 par common stock with 64,000 shares outstanding. The preferred stock is cumulative and preferred stockholders last received a dividend in 2014. If the company wants to distribute $4 per share to the common stockholders in 2017, what is the total amount of dividends that the company must pay at the end of the current year? Select one: a. None of these are correct. X b. $256,000 c. $263,800 d. $258,600 e. $7,800
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Vicco Inc. has Assets of $296,155 and Liabilities of $81,959. The firm has 13,740 shares of stock outstanding. Then the board decides to pay a dividend of $12.80 per share. What is the value of Stockholders' Equity after the payment of the dividend?
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Match Group went public in November 2018. The company sold 19,833,333 shares at $15.2 per share. The underwriting spread was $2.26 a share, and the direct expenses were $0.37 a share. a. What was the percentage underwriting spread? (Enter your answer as a percent rounded to 1 decimal place.) b. How much did the company raise after all expenses? (Enter your answer in dollars not millions. Round your answer to the nearest dollar.) c. On its first day of trading the stock closed at $19.54. Calculate the total dollar cost of underpricing. (Enter your answer in dollars not millions. Round your answer to the nearest dollar.)
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In 2014, the board of directors of Frosty Cakes Inc. declared total dividends of $55,000. The company has 1,800 shares of 3%, $90 par preferred stock. There are no dividends in arrears. How much of the $55,000 will be paid to preferred shareholders and how much will be paid to common shareholders?