Answer:
Total dividend for common stockholders = $46,800
Explanation:
Given:
Number of Cumulative share = 9,000
Price of each share = $10
Dividend rate = 4% = 4/100 = 0.04
Cumulative number of year = 2
Total Declared dividend = $54,000
Computation of Total dividend for common stockholders:
Total dividend each year = Number of Cumulative share × Price of each share × Dividend rate × Cumulative number of year
Total dividend each year = 9,000 × $10 × 0.04 × 2
Total dividend each year = 7,200
Total dividend for common stockholders = Total Declared dividend - Total dividend each year
Total dividend for common stockholders = $54,000 - $7,200
Total dividend for common stockholders = $46,800
