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The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders

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Question

A company has 2,700 shares of $10 par value, 6.0% cumulative and nonparticipating preferred stock and 27,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $1,000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is;$3,240.;$1,620.;$1,000.;$2,240.;$620.

 

Paper#24119 | Written in 18-Jul-2015

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