Question

Organic​ Produce, Inc. has shares of common stock outstanding and shares of preferred stock outstanding. The common stock is par​ value; the preferred stock is ​% noncumulative with a par value. On October​ 15, 2019, the company declares a total dividend payment of . How much dividend will be paid to the preferred​ stockholders?

Answer 1

Answer:

Some information is missing, so I looked it up.

• total common stocks outstanding = 49,000
• par value = $0.08 per stock
• total preferred stock = 4,000
• preferred stock par value = $100
• preferred dividends = 9%
• total dividends = $45,000

preferred stockholders will receive 4,000 x $100 x 9% = $36,000 in dividends, which means that they will receive $9 per preferred stock

common stockholders will receive $9,000 / 49,000 = $0.1837 per common stock