The stockholders' equity section of Leyland Corporation's balance sheet at December 31 is presented here.
LEYLAND CORPORATION
Balance Sheet (partial) |
| Stockholders' equity |
|
|
|
| Paid-in capital |
|
|
|
| Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding |
|
$ 600,000
|
|
| Common stock, no par, 750,000 shares authorized, 580,000 shares issued |
|
2,900,000
|
|
| Total paid-in capital |
|
3,500,000
|
|
| Retained earnings |
|
1,158,000
|
|
| Total paid-in capital and retained earnings |
|
4,658,000
|
|
| Less: Treasury stock (6,000 common shares) |
|
(32,000
|
)
|
| Total stockholders' equity |
|
$4,626,000
|
|
(d) If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?