If a corporation has dividends in arrears on cumulative


1- If a corporation has dividends in arrears on cumulative preferred stock ($15,000 per year), and declares $40,000 of dividends during the current (second) year, how much will be paid to the common shareholders?

2- If a corporation has dividends in arrears on( non-cumulative) preferred stock ($15,000 per year), and declares $40,000 of dividends during the current (second) year, how much will be paid to the common shareholders?

 

3- Your Corporation had 50,000 shares of $8.00 par value common stock outstanding when it decided to issue a 10% stock dividend.   The market value at the date of the dividend was $20 per share. What is the dollar amount of the stock dividend?

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Financial Accounting: If a corporation has dividends in arrears on cumulative
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