Jim Corporation pays its cumulative preferred stockholders $1.60 per share. Jim has 30,000 shares of preferred and 75,000 shares ofcommon. In 2021, 2022 and 2023, due to slowdowns in the economy, Jim paid no dividends. Now In 2024, the board of directorsdecided to pay out $500,000 in dividends.How much of the $500,000 does each class of stock receive as dividends?Preferred stockCommon stockSavedDividends

Lets understand the basics.Shares are mainly divided into two type of activities which are,(1)…

Answered: Jim Corporation pays its cumulative…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Glendora Company has 200,000 shares of cumulative, five percent, $100 par value preferred stock outstanding. Last year the company failed to pay its regular dividend, but the board of directors would like to resume paying its regular dividend this year. How would I Calculate the dividends in arrears and the total dividend that must be paid this year.
On September 6, 2020, the board of directors of Peterson Manufacturing voted to distribute $4,600,000 to the firm's stockholders.If the firm has issued 75,000 shares of 4% preferred stock with a par value of $10 and 1,870,000 shares of common stock outstanding, calculate the following. (Round all answers to the nearest cent.) 1. Dividend per share of preferred stock: $ 2. Dividend per share of common stock:
4. On January 1, 2019 FirstEnergy Corp issued 21,000 shares of $100 par, 3%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred or common shareholders. What amount of dividends will a preferred shareholder owning 100 shares receive in 2021 if FirstEnergy pays $1,000,000 in dividends? Multiple Choice $21,000. $900. $990. $630.
The shareholders' equity of MLS Enterprises includes $100 million of no par common stock and $200 million of 6% cumulative preferred stock. The board of directors of MLS declared cash dividends of $31 million in 2021 after paying $7 million cash dividends in both 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Annual Preferred Dividend: 2019 2020 2021 Total $ Par Value Preferred Stock X Answer is complete but not entirely correct. Annual Preferred Dividend 200 Total Cash Dividend Paid 7,000,000 7,000,000 31,000,000 $ 45,000,000 $ Dividend Rate (%) 6.0 Paid to Preferred % 7,000,000 X 7,000,000 X 22,000,000 36,000,000 $ Paid to Common 12 0 0 9,000,000 9,000,000 Dividends in Arrears at year- end 5,000,000 X 10,000,000
Security Data Company has outstanding 50,000 shares of common stock currently selling at $40 per share. The firm most recently had earnings available for common stockholders of $120,000, but it has decided to retain these funds and is considering either a 5% or a 10% stock dividend in lieu of a cash dividend. Determine the firm’s current earnings per share. If Sam Waller currently owns 500 shares of the firm’s stock, determine his proportion of ownership currently and under each of the proposed stock dividend plans. Explain your findings. Calculate and explain the market price per share under each of the stock dividend plans. For each of the proposed stock dividends, calculate the earnings per share after payment of the stock dividend. What is the value of Sam’s holdings under each of the plans? Explain. Should Sam have any preference with respect to the proposed stock dividends? Why or why not?
19. Shea Company Ltd. has issued 100,000 6%, $50 stated value, cumulative preferred shares. In 2021, no dividends were declared on preferred shares. In 2022, Shea had a profitable year and decided to pay dividends to shareholders of both preferred and common shares. If Shea has $750,000 available for dividends in 2022, how much can it pay to the common shareholders? a.$0 b.$150,000 c.$450,000 d.$750,000
During 2021, Farewell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Farewell did not declare or pay any dividends during 2021. Farewell's net income for the year ended December 31, 2021, was $2.5 million. The income tax rate is 25%. Farewell granted 10,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $29 per share. The options vest after one year. The market price of the common stock averaged $30 per share during 2021. What is Farewell's diluted earnings per share for 2021, rounded to the nearest cent? O $3.14. O $4.90. $4.34. O Cannot determine from the given information.
Archer, Inc., has 10,000 shares of 8%, Pioo par value, noncumulative preferred stock and 40,000 shares of Pi par value common stock outstanding at December 31, 2008. There were no dividends declared in 2007. The board of directors declares and pays a P120,000 dividend in 2008. What is the amount of dividends received by the common stockholders in 2008? * PO P80,000 O P120,000 O P40,000
Ace Corporation pays its cumulative preferred stock $1.95 per share. There are 40,000 shares of preferred and 80,000 shares of common. In 2016, 2017, and 2018, because of slowdowns in the economy, Ace paid no dividends. Now, in 2019, the board of directors has decided to pay out $600,000 in dividends. The common stockholders receive: Multiple Choice $288,000 $312,000 $444,000 $366,000 3:14 acer
LaVine Corp. had 1,000,000 shares of common stock outstanding throughout 2021. On August 1, 2021, LaVine issued $12 million of ten year, 6% bonds. Beginning August 1, 2023, bondholders may exercise a conversion privilege to convert the bonds into 300,000 shares of LaVine common stock. During 2021, LaVine reported $8,000,000 of net income and paid $500,000 in preferred dividends. LaVine's marginal income tax rate is 20%. What is LaVine's 2021 diluted earnings per share? O $6.78 $6.96 $7.50 $6.73 $5.94 O $6.04
Crane, Inc. has $500,000, $0.80, no par value preferred shares (50,000 shares) and $1,000,000 of no par value common shares outstanding (80,000 shares). No dividends were paid or declared during 2021 and 2022. The company wants to distribute $582,500 in dividends on December 31, 2023. Calculate the amount of dividends to be paid to each group of shareholders (i.e., preferred and common), assuming the preferred shares are non-cumulative and non-participating. Preferred Common Total dividends $ $ Save for Lat
Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2021: Common stock (par $1; issued and outstanding, 400,000 shares) Preferred stock, 7% (par $10; issued and outstanding, 20,000 shares) Retained Earnings $ 400,000 200,000 890,000 On December 31, 2021, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2019 or 2020. Three independent cases are assumed: Case A: The preferred stock is noncumulative; the total amount of 2021 dividends would be $20,000. Case B: The preferred stock is cumulative; the total amount of 2021 dividends would be $20,000. Dividends were not in arrears prior to 2019. Case C: Same as Case B, except the amount is $65,000. Required: 1-a. Compute the amount of dividends in total payable to each class of stockholders if dividends were declared as described in each case. 1-b. Compute the amount of dividends per share payable to each…

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