Question

There are 5,000 shares of $50 par value preferred stock outstanding l, and 25,000 shares of common stock outstanding. Preferred stock has an 8 percent guaranteed rate return. Dividends are declared of $1.25 per share of common stock, together with the guaranteed rate for preferred stock​

Answer 1

the answer above me is correct

Step-by-step explanation:

i got it right

Answer 2

common shares: $31,250

preferred stocks: $20,000

Step-by-step explanation:

There are 5000 outstanding preferred stocks with a par value of $50

The common shares are 25,000

Divided for preferred stock are at 8%

the actual dividends will be

=(8/100 x $50) x 5000

=$4 x 5000

=$20,000

Dividends for common shares are at $1.25 per share.

Total dividends = $1.25 x 25,000

=$31,250