Mendez Corporation has 10,000 shares of its $100 par value, 7 percent cumulative preferred stock outstanding and 50,000 shares of its $1 par value common stock outstanding. In Mendez’s first four years of operation, its board of directors paid the following cash dividends: 2011, none; 2012, $120,000; 2013, $140,000; 2014, $140,000. Determine the dividends per share and total cash dividends paid to the preferred and common stockholders during each of the four years.
Mendez Corporation has 10,000 shares of its $100 par value, 7 percent cumulative preferred stock outstanding and 50,000 shares of its $1 par value common stock outstanding. In Mendez’s first four years of operation, its board of directors paid the following cash dividends: 2011, none; 2012, $120,000; 2013, $140,000; 2014, $140,000.
Determine the dividends per share and total cash dividends paid to the preferred and common stockholders during each of the four years.
Dividend means the amount given to shareholder of the company as profit distribution by company.
First , dividend is given to preference stock holder at specified percentage and then rest dividend is given to common stock holder.
If the preference share are cumulative , then unpaid dividend of last year will be given in next year and if the preference share are not cumulative , then unpaid dividend of last year will not be given in next years.
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