Dividend payments to common stockholders


PDQ Corp. has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total expenses are $600,000. The firm's interest expense is $250,000, and the corporate tax rate is 40%. The firm paid dividends to preferred stockholders of $40,000, and the firm distributed $60,000 in dividend payments to common stockholders. What is PDQ's "Addition to Retained Earnings?"

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Finance Basics: Dividend payments to common stockholders
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